How To Correct Negative Cash Flow From High Interest Rates?

Many investors with variable rate mortgages are facing negative cashflow due to high-interest rates. Three main solutions are offered: 1) Get an interest-only mortgage or line of credit to save on principal payments and increase cashflow. 2) Change lenders to re-extend the amortization period and lower monthly payments. 3) Add a second suite to the property through refinancing to increase rental income and improve cashflow. These strategies have helped investors save money on interest expenses.
  • (00:00) - Introduction to the Wisdom Lifestyle Money Show
  • (01:47) - Option 1: Interest-Only Mortgages and Lines of Credit
  • (03:41) - Option 2: Changing Lenders to Re-Extend Amortization
  • (05:08) - Option 3: Adding a Second Suite to Increase Rental Income
  • (07:05) - Save on Interest Expenses and Improve Your Financial Situation
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Takeaways
  • Investors with variable rate mortgages are experiencing negative cashflow due to high-interest rates.
  • Three main solutions to correct negative cashflow are: interest-only mortgage or line of credit, changing lenders to re-extend amortization, and adding a second suite through refinancing.
  • Interest-only mortgages or lines of credit can save on principal payments and increase cashflow.
  • Changing lenders can lower monthly payments by extending the amortization period.
  • Adding a second suite to the property through refinancing can increase rental income and improve cashflow.
  • These strategies have helped investors save money on interest expenses.

If you're looking to access the best financing for Real Estate Investors in Canada & the U.S.A., then I suggest you Book A Free Strategy Call with a specialist on my team.
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