I thought it would be interesting to point out this article in the Financial Post published this week which talks about the benefits of paying down your mortgage faster instead of building up your assets and contributing to your RRSPs or high-risk investments.
MonsterMortgage.ca covered this very topic in our Winter 2009 Newsletter with an article entitled Radical Times, Common Cents Strategies: Make 7.69% Risk Free!. It is interesting to note that the strategy of paying down your mortgage is still very relevant today, even with economic turmoil and rising interest rates as Canadians are saving more and putting their money in sensible investments. Take a look back at the Winter 2009 Newsletter to see the math that shows the effectiveness of this mortgage strategy and if you apply it to the lifetime of your mortgage, you can begin to see how your money can add up either in your favour or your bank’s favour.
Strategies such as paying down your mortgage faster puts money in your pocket and understanding the financial benefit to these methods can change the way you think about money in general.