Homeowners whose mortgages are up for renewal are getting a shock as their payments jump by hundreds of dollars thanks to recent interest rate hikes.

Ian Penney of licensed insolvency trustee, Janes and Noseworthy says they’ve been busy fielding questions from homeowners who have either recently renewed their mortgage at higher rates, or who are nearing renewal and worried about how their payments are going to affect their budgets.

He says whether you’re up for renewal in the next year or not, the impact of higher interest rates will be felt eventually and you need to be ready.

“It’s coming” says Penney, “you really need to be planning for this, understand the kind of number that you’re talking about and how you’re going to deal with that in your budget.”

Penney says if you need to, sit down with a licensed professional to figure things out. He also advises home owners to shop around when it’s time for renewal and think carefully if offered the option of extending your amortization.

That strategy should only be employed if other options don’t work and you’re running the risk of losing your home says Penney. “Don’t be too quick to do that” he cautions, “banks sell money, they want to get the most interest from you as they possibly can, at the highest rate they possibly can… you got to do your homework and you got to go in ready to negotiate, and really explore all your options.”