While doing a minor renovation at our house, we found the business section of the Globe and Mail from July 19, 1969 stuffed in one of the walls. Interestingly enough, one of the main articles was about interest rates on mortgages being increased to 7.5%. People who owned homes in the early 80’s will remember rates skyrocketing well past 15%.

Why is this relevant? Most people with a mortgage today have interest rates on their homes that are less than 5%, at historically low levels. These rates will eventually go up. People should be reminded of the prepayment options in their mortgage. Mortgage companies will usually allow you to prepay 10% to 20% of the balance owing without any penalties. It would be wise for people to take advantage of the prepayment options, because eventually, interest rates will rise. Making prepayments on your mortgage will make your mortgage payment more manageable if interest rates do rise in the future.

Mark Woitzik is a Real Estate Lawyer in Whitby, and his practice is focused on Real Estate Law, Wills and Estates, and Corporate Law.