It’s usually best to find a balance between paying your mortgage and contributing to your RRSP. Here’s why.
In a perfect world, paying off your mortgage before contributing to your RRSP would be a good thing to do. But that would call for extreme discipline.
After your last mortgage payment, you would have to keep putting the same monthly amount aside for your retirement. That’s not very realistic.
Another possibility is to make substantial contributions to your RRSP before buying a home. However, a home is more than a financial investment; it’s a life choice that you don’t want to put off for too long. The RRSP that you started early could help make you a homeowner more quickly through the Home Buyers’ Plan.
That’s why it’s usually best to find a balance between paying your mortgage and contributing to your RRSP, even when RRSP returns are lower than mortgage interest rates. Continue reading →
One morning like any other, when you aren’t expecting anyone, there comes a knock at the door. It’s a bailiff who hands you a repossession notice from a financial institution for defaulting on your mortgage payments. But you already paid off your mortgage a few years ago. They must have the wrong person, right? Nope–the title on your home has been stolen.
Title theft, a type of mortgage fraud, isn’t common–but it’s been on the rise in recent years. It starts with stealing your identity. Fraudsters create fake documents so they can take over the title on your property and then remortgage your house or sell it and, in any case, make off with the proceeds. Continue reading →