As more homeowners face higher mortgage renewal rates, some may need to consider selling their homes due to financial strain. However, experts advise exploring alternative options before resorting to a sale.

Start by evaluating your spending habits, including household maintenance, car repairs, and medical bills, to identify areas where you can cut costs. Consider diversifying income sources, such as taking on a second job or renting out a room in your home. Allocate spare cash towards your current mortgage with a lump-sum payment to manage the expected increase in monthly payments upon renewal. Seek guidance from financial advisers to determine an affordable and sustainable lifestyle. Don't assume the first offer from a lender is the best rate; shop around, as even a small interest rate difference can make a significant impact. Consider factors like mortgage amortization, fixed vs. variable rates, and finding the best rate offer. Higher mortgage rates affect both low- and high-income households, although those with higher incomes may have more options to adjust to the increased costs. Some turn to their parents for financial assistance. If all options are exhausted, selling the property may be the last resort. It's crucial to act before foreclosure and consider selling to avoid selling below market value. Consult with a licensed insolvency trustee if necessary. Remember that selling the house doesn't end your responsibilities; you'll still need to cover utility expenses and house insurance until ownership is transferred. If the house sells at a loss, you're responsible for covering the difference. After selling, homeowners may face challenges in the housing market, including higher interest rates and rising rental prices. The expectation of rates falling again may not be realistic in the near future. Anyone renewing their mortgage in the next year or two will likely feel the financial impact of higher interest rates.