Trigger Point

For a variable-rate mortgage, the Trigger Point will be reached if the outstanding principal balance (including any capitalized interest) is higher than the original principal balance of your mortgage. If this happens, your bank will contact you to discuss possible solutions. The most likely solutions will be either 1) you make a lump sum payment of principal to bring your mortgage balance back below the original balance, 2) you increase your monthly payment amount to pay down principal according to your original amortization schedule, or 3) you convert your mortgage to a fixed ate mortgage.

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About The Author

Don Scott

Don Scott is the founder of a challenger mortgage brokerage that is focused on improving access to mortgages. We can eliminate traditional biases and market restrictions through the use of technology to deliver a mortgage experience focused on the customer. Frankly, getting a mortgage doesn't have to be stressful.

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Managing Uncertainty in Today’s Mortgage Market

By Don Scott • May 27, 2025

Feeling hesitant about entering the housing market today due to political or economic uncertainty is understandable. The landscape can seem unpredictable—interest rates shift, housing supply fluctuates, tariff news hits the headlines and policies change. As a mortgage broker, we see this uncertainty every day. But here’s the truth: while there is much beyond your control, mastering the factors that you can control is what will make the biggest difference in your journey to homeownership.