What is a "Trigger Rate"?

The Relationship Between Interest Rates and Mortgage Payments:

The monthly payment remains fixed for variable-rate mortgage holders even as interest rates rise. However, as the payment's interest portion increases, less money is allocated toward paying off the principal amount. Eventually, a point is reached where the entire payment goes towards covering the interest, leaving none to reduce the mortgage balance. Ross Taylor, President at Ross Taylor Mortgages, explains that this situation means homeowners find themselves back at square one, with their mortgage balance remaining the same.

Impact on Homeowners and the Housing Market:

The rising borrowing costs pose significant implications for homeowners and the housing market as a whole. Many homeowners may choose to consult with their lenders to explore alternatives that allow them to keep their homes. For instance, individuals seeking to upsize may opt to stay in their current homes rather than sell and purchase a larger house at higher interest rates, which would result in substantially increased mortgage payments.

Considerations for Selling and Downsizing:

If homeowners decide to sell their property to alleviate their monthly financial burdens and downsize, seeking a professional's advice becomes crucial. It is important to consult with an experienced  Realtor who can provide a seller's consultation, guiding homeowners toward making informed decisions. I can offer valuable insights and strategies to help homeowners navigate the market effectively.


The rising cost of borrowing in Canada has significantly strained households, particularly those with variable-rate mortgages. As interest rates increase, homeowners face the challenge of paying more towards interest rather than reducing the principal amount owed. This situation has prompted homeowners to explore various options, including consulting with lenders to find ways to keep their homes. Additionally, those considering selling and downsizing should seek the guidance of an experienced Realtor, such as myself, to help you make informed decisions in a changing market. By understanding the implications and exploring available strategies, homeowners can navigate the impact of rising borrowing costs more effectively.

Please call me for your Sellers Consult.