By: Srivindhya Kolluru | Toronto Star | June 25, 2023
Read More, and see what Scott Plaskett says about My mortgage lender says I’ve hit my ‘trigger rate.’ What does that mean, and what are my options?
Borrowers should also take a holistic look at their complete financial picture. While there’s not much you can do about interest rates, Scott Plaskett, certified financial planner, managing partner and CEO of Iron Shield Financial Planning, says you can evaluate your overall cash flow.
For example, if the interest on your mortgage is eight per cent, but your investments only earn five per cent, Plaskett says there’s now a cost to holding onto those investments instead of tackling your debt because the differential is not working in your favour.
“People have to understand that being liquid in a challenging economic environment is more important than being debt-free or equity rich,” he says. “You run into a real pickle if something happens to your cash flow and you don’t have the cash on the side.”
