Pros and cons of faster mortgage repayment
To reach mortgage freedom faster, you can capitalize on today’s low interest rates by accelerating your mortgage with extra monthly contributions or lump-sum payments.
According to a recent survey, the majority of Canadians who currently have a mortgage expect to have it paid completely by age 55. Mortgage freedom is a desirable option, and with mortgage rates at an all-time low, now may be the optimum time to achieve this goal.
Canadians are taking advantage of several different repayment options to pay their mortgages off faster. These include accelerating payments to weekly or bi-weekly rather than monthly or making lump-sum payments. Many are doing both. However, putting all excess funds towards one asset may not be the best option for everyone. This article from Moneyville shows the benefit of putting some money aside to invest for the possibility of earning a higher rate of interest. Each financial situation is different, so to find a repayment plan that works for you, talk to an Ottawa Mortgage Broker.