By: Nathan Lawrence

With interest rates at historic lows, would you be able to afford a rate increase on your mortgage? In the short interest rates are not expected to adjust very much, but if you are in a mortgage that does not renew for a few years, you could be facing an adjustment at renewal time.

There are some fairly simply things that you, as a mortgage holder could do to better prepare yourself for when the rates start to increase:

1. Take advantage of increase allowances to your mortgage payment.
2. Make at least one annual additional payment against your mortgage.
3. Or simply start using a projected increased payment when doing a monthly household budget.

The option 1 or 2 are going to have the best and biggest impact on your mortgage amortization and the overall interest you pay. However, if that is not possible start planning for an increase so that you know how your budget would be affected down the road.

http://business.financialpost.com/personal-finance/managing-wealth/nearly-one-in-six-canadians-could-not-handle-500-increase-in-mortgage-payment