Side Hustles To Help Pay Your Rising Mortgage Payments
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Has your mortgage repayment shot up in recent months? Are you wondering how to make extra money to pay off your mortgage? You may be considering taking on a second job or finding something to sell online in your free time. With a little effort and creativity, you could generate extra income to make a real difference when it comes to paying off your mortgage. In this article, we’ll look at some side hustles to pay off your mortgage and make sure you’re ready to ride through any economic uncertainties.
Key Takeaways
- Managing mortgage anxiety in a high-interest rate environment can be gruelling when you’re stressed about where to get money to pay off your mortgage.
- It’s time to be creative about generating an extra income. Take a look at your skills and interests and find a way to monetize them.
- Set a budget for the coming months and see where you can make adjustments to free up some extra money for your mortgage.
How to Earn Extra Money to Pay Off Your Rising Mortgage Payments
According to the Canada Mortgage and Housing Corporation (CMHC), Canada’s national housing agency, the average mortgage repayment increased by nearly 18% in 2022 due to rising interest rates. No wonder many homeowners are seeking ways to boost their monthly income to cover their expenses. Let’s look at some of the ways to make money to pay off your mortgage.
1. Freelancing
Freelancing is a great way to earn an extra income without taking on a second job. You can decide on the number of hours you have to dedicate to freelancing each week and find projects accordingly. There are numerous opportunities available for both new professionals and experienced professionals, ranging from writing and editing to consulting and project management.
The easiest way to find your first freelancing gig is to stay close to your area of expertise or find projects that require your existing skills. There are many freelancing platforms, such as Upwork, Toptal, and Freelancer.com, that connect businesses with independent professionals, making it easier for you to earn a few extra dollars every week.
2. Renting Out a Room or Property
Do you have a spare room in your house or an outside building on your property that you could rent out? Many homeowners use this to earn extra income each month, which can be applied towards their mortgage payments. You’re probably aware of the possibility of renting out your extra room or independent property on short-term rental platforms like Airbnb. But have you considered other types of rentals, such as office space, filming or photo shoot locations, or even retreats, workshops, or private dinner location rentals? Platforms like Peerspace enable you to list any part of your property and rent it out by the hour, such as this beautiful loft in Toronto.
3. Taking Out Investment Earnings
Taking out investment earnings can be another option to supplement your income. The key is to create a diversified portfolio of investments that yields consistent returns while mitigating risks. There are various types of investments available, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs). Be sure to research all of them and understand the associated risks. In any case, consider hiring a financial advisor to help you work out a good strategy and manage your investments.
4. Teaching an Online Class
Do you have a skill that you could pass on to others? Are you skilled at something that many people compliment you on? You would be surprised at the things that people are keen to learn and are willing to pay someone to teach them online. You’ll want to determine how much to charge for your classes and then consider the amount of time you want to dedicate to it.
You won’t need much to get started, so your first task will be to find your first students by promoting your online class on teaching platforms and social media. Once you get started, teaching an online class is a great way to make some extra income to pay off your mortgage.
5. Completing Gigs and Tasks
Do you have spare time and want to be useful to people? Why not offer your services for small (or big) tasks and get paid in return? Does a neighbour need to paint their whole house? Does your cousin need a personal assistant for their business? You may also want to consider local businesses that require assistance with specific tasks, such as cleaning, data entry, or marketing. You could also consider longer-term projects or gigs, such as tutoring, research assistance, or content writing.
6. Delivering Food with Uber Eats or DoorDash
Delivering food through delivery platforms can be a straightforward way to earn extra money every week. Your earning potential will depend on your location and the level of competition in your city or neighbourhood. All you need is a driver’s license and consent to a background check to get started. You can work as little or as much as needed by accepting new deliveries.
7. Driving for a Rideshare App
Similar to the delivery food services mentioned above, you could decide to drive for a rideshare app, such as Uber or Lyft, as long as your car meets the app’s requirements. You could even combine the two and alternate between delivering food and picking up passengers. Becoming a driver for these apps is certainly a great way to supplement your income if you’re wondering how to get money to pay off your mortgage.
8. Create Handmade Crafts to Sell Online
One great way to make some extra money is by creating handmade goods and selling them online. If you’re creative and good with crafts, you can create unique pieces such as jewelry, art, clothing, accessories, home decor, and much more. You’ll then create an account on a platform like Etsy and sell your art to people nationwide.
9. Walking Dogs or Pet Sitting
If you love animals, you could offer your pet-sitting/dog-walking services in your neighbourhood. There are also platforms to find dog walking jobs or pet sitting opportunities in your area, and you can easily fit them in your spare time without getting a second job to pay off your mortgage.
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How to Budget as Interest Rates Rise
As interest rates rise, it’s important to budget your money wisely to ensure that you’re able to cover your basic needs and still have money left over for your mortgage repayments and savings account. Start by identifying your spending habits to get a better picture of where your money is going and where you may be able to save. Then, create a plan to save a percentage of your income each month to prepare for future expenses. Once you have a budget in place, do your best to stick to it.
Frequently Asked Questions
Should I buy a home if interest rates are rising?
It can be a smart decision to buy a home if interest rates are rising, depending on your individual situation. Rising interest rates often mean fewer buyers, resulting in less competition and, consequently, more choice. Because there are fewer buyers, house prices tend to go down as interest rates rise. It’s always essential to consider your financial goals and budget to determine if it’s the right time for you to make a purchase. It’s also essential to research the current market trends in your area and determine the type of loan that best suits your needs.
Is it better to buy a home with shorter-term mortgage loans?
With so much uncertainty surrounding interest rates and the housing market, shorter-term mortgages are becoming increasingly attractive, as they offer a lower interest rate but a higher monthly repayment. The shorter the term of the mortgage, the faster you’ll build your equity in your home. Also, as the interest rate is lower than the standard mortgage, you’ll save money in the long run.
Final Thoughts
By following these steps and staying on top of your finances, you can ensure that you are budgeting wisely as interest rates rise. Take the time to do your research and consult with one of our nesto mortgage experts to get the right advice.
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