Pros and cons of faster mortgage repayment

According to a recently released survey, the majority of Canadians who currently have a mortgage intend to have it fully paid by the time they reach 55. The thought of being mortgage-free by retirement is definitely a desirable option, and with mortgage rates at historic lows, this could be the best time to achieve this goal. Alternatively, low mortgage rates could prompt some to opt for carrying low interest debt over a longer period while using excess funds to invest. It can be argued that placing the majority of your net worth into your home is the best investment, as a home is the only investment you live in. Alternatively, the importance of investing in a more diversified way can be argued as well. Finding the balance is different in every case.

Canadians have been taking advantage of different repayment options to pay their mortgages off faster. These include accelerating payments from monthly to bi-weekly or weekly, making lump-sum payments toward their mortgage, and in many cases, both. Access to easy to use mortgage calculators allows you to easily fit accelerated payments into your budget. Each financial situation is different, so to find a repayment plan that works for you, talk to a qualified Mortgage Broker.

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