Extending mortgage period could keep payments in check even as rates rise

Canadian homeowners may be in for a shock when it's time to renew their mortgages, since rising interest rates mean their monthly loan payments will likely climb higher, too.

That's particularly unwelcome as rising prices for gas, groceries and other staples are already eating into household budgets.   

Experts say extending the amortization period for your mortgage could keep your monthly payments in check even as you face higher interest rates, but caution that doing so comes at a cost as you will end up paying interest for a longer period of time.

Mike Rocha, director of mortgage experience at Scotiabank, says customers renewing today who may have been paying interest at less than three per cent, or even two per cent, are facing the potential for rates over four per cent.