Does economic uncertainty have you concerned about paying your mortgage in the future? Economies go through strong and weak cycles over time. In this respect, Calgary is no different from other cities. You’ve worked hard to provide a good home for your family so the fear of loosing it can be very worrisome! Here are some tips to recession-proof your mortgage.
 

Shop around until you find a good interest rate and lock it in. Consider a fixed mortgage of up to five years. Although variable mortgages traditionally have resulted in lower rates over time, they’re subject to change and your payments might go up. A fixed rate gives you the peace of mind that your monthly payment will remain the same over the life of the mortgage.
 

Hopefully, you’ve bought a house that you can comfortably afford. A mortgage is viewed as good debt since your property will normally appreciate over time. To prepare more room in your budget for unexpected financial strain, focus on paying down other debt such as credit card debt that has a very high interest rate
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If you have a great credit score it’s easier to negotiate a good interest rate when you borrow money. This can have a big impact when you take out a mortgage. To improve your credit score, pay all your bills in full and on time and even early if you can. Then, check your credit score regularly through TransUnion or Equifax to see how you’re doing.
 

If you’re able to, increase your monthly mortgage payments. Maybe you received a raise recently that you can put to work this way without feeling a financial effect. Making mortgage payments bi-weekly or weekly is another option that you can discuss with your bank to accelerate your payments.
 

Most mortgages allow extra payments now and then. Review the terms with your lender and take advantage of this when you can. Have you just paid off a car loan or received a tax refund? An extra mortgage payment can be a good way to use these funds. Ask your bank manager if you can also make match payments. This involves scheduling extra payments for a set period of time. The benefit is that you can then skip one or more payments in the future if money is tight.
 

An emergency fund is an invaluable tool to make sure that you’re ready for unexpected expenses that can put extra pressure on your budget. Generally, the fund should cover at least three months of living expenses. This gives you the comfort that you’ll be able to make your mortgage payments if you lose your job, for example.
 

Consider renting out a portion of your home. It could be a spare bedroom for a student boarder, a room renting occasionally through Airbnb or creating a secondary suite in your home. Having some rental income can really assist you to pay your mortgage. 
There are many steps that you can take to recession-proof your mortgage. By paying down your loan faster when you can, proactively improving your credit score and maintaining some flexibility in your finances, you’ll be well on your way!