Restructure Your Mortgage to Lower Payments and Boost Cashflow

If rising costs are squeezing your budget, here’s how extending your amortization can free up cashflow without selling your home or adding high-interest debt.

The Problem

Between inflation, repairs, and tuition bills, many homeowners are running short each month. Instead of turning to credit cards or lines of credit, you can restructure your mortgage to reduce monthly payments and keep your cashflow manageable.

Mortgage Hack #2: Extend Your Amortization

Extending your amortization — from 25 years to 30 years, for example — spreads the same debt over a longer period, lowering monthly payments.

Example: A $500,000 mortgage at 5.5%:

• 25-year amortization = $3,064/month

• 30-year amortization = $2,840/month

• Savings: $224/month

That extra $224 could cover home repairs, rising utility bills, or a child’s university tuition.

The Catch (and How to Fix It)

Yes — you’ll pay more interest over the long run. But if you use the extra monthly breathing room to:

• Build an emergency fund, and

• Pay lump sums when life stabilizes,

You’ll come out ahead — both financially and mentally.

Real-World Example

Many Ontario homeowners are using this strategy during renewal: Instead of adding consumer debt to survive rising costs, they extend amortization slightly to keep payments comfortable, then prepay aggressively once rates drop again.

Call to Action

If you’re feeling the pinch each month, I can show you exactly how much cashflow you could free up by restructuring your mortgage. Start your no-obligation review at LaframboiseMortgage.ca.