Cashflow solutions for debt and COVID Business Loans

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High Cost, Low Cashflow

Well the government has sure done a good job of making life unaffordable. 

Seems like no matter the colour they wear, they have a tough time keeping those books balanced.

With interest rates currently up in the 5%-6% range, Canadians with variable rate mortgages are struggling to make payments while those with fixed rates are (not) looking forward to the time when their fixed rate mortgages will come up for renewal.

For some borrowers, that mortgage renewal date is fast approaching.

There is no cookie cutter solution for clients these days.  Each person needs a one on one consultation to understand the best way to move forward and the best way to re-take control of their personal and business cashflow.

The past few years have been challenging and as Canadians, we are challenged now to find the best way forward and succeed despite the obstacles placed in front of us.

Please read on for three ideas/options that may help you make the best financial decisions in these interesting times:

  1. Mortgage Renewal
  2. Mortgage Refinance
  3. COVID CEBA Business Loans
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1) Mortgage renewals – DON’T SIGN your MORTGAGE RENEWAL form

Mortgage lenders are sending out renewal letters offering renewal rates that are between 0.5% and 1% higher than best rates.

When you receive this document from the bank, PLEASE do not sign it. 

Over the past few months I have helped Canadian clients save thousands by NOT signing that form.

The form is easy to sign but the rates that lenders are offering Canadians via these renewal letters are criminal. 


Accepting those rates by signing the renewal letter could cost you thousands of dollars in unnecessary interest costs over the term of your mortgage.

Please get a second opinion. 

Once you have the mortgage renewal offer in hand from your lender, reach out and I will do a FREE market analysis to ensure you are not being taken advantage of by your lender.

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2) Mortgage Refinance – Cashflow Quandary

Canadians are running into cashflow issues. 

They may have a home that has doubled overall in price over the past 10 years but their banking cashflow is being stretched to the limit by increasing interest charges and inflation.

A mortgage refinance may be able to solve cashflow issues in certain situations.

Mortgage Refinance Example

Hypothetical Canadian Client:

Total home value: $750,000

Mortgage balance: $475,000

Current mortgage payment at 2.79% = $2,197/month

Current credit card balance = $30,000

Current interest only minimum credit card payment = $500/month

Current line of credit balance = $20,000

Current interest only minimum line of credit payment = $166.58/month

Minimum monthly payments before mortgage renewal or refinance = $2,863

If you are able to renew at best mortgage renewal rates your mortgage payment alone will be $2,952 and your total monthly payments will climb to $3,618.58

If you choose rather to refinance your mortgage, consolidate all consumer debt AND extend your amortization to 30 years, this could lower your total monthly payment to $3,219 – saving you over $400/month.

Experiment with this scenario or give me a call to discuss at 250-212-7954 and we’ll find a solution that works for you.

3) CEBA COVID Business Loans

The CEBA Small Business COVID loans are coming up for obligatory repayment on January 18th of 2024.

If small business owners are able to pay back the balance of their loan, they will receive loan forgiveness of up to 33% (up to $20,000).

If they are unable to pay the balance of the loan back, small business owners will be required to pay back the full loan.

This is another situation where a mortgage refinance could be worthwhile; especially if your mortgage renewal is happening soon.

****Using a mortgage refinance to consolidate your consumer debt as well as your outstanding CEBA COVID loan may be the answer to restoring your personal and business cashflow as well as receiving the 33% loan forgiveness provided by the government if CEBA loans are paid back by the 18th of January.****

Conclusions and Further Thoughts

Contact Huber Mortgage to talk through your options!  Contact HERE.



PS – One of my hobbies is blogging about mortgages, debt and government policy.  During the day I’m a MORTGAGE BROKER in Kelowna, BC!

Check out the Huber Mortgage Home Buyers Guide HERE

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