Tag Archives: payment

Should you pay down your mortgage or contribute to your RRSP?

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.

Shutterstock (Desjardins)
Shutterstock (Desjardins)

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

Five Tips to Pay Off Your Mortgage More Quickly

Buying a home is a major purchase that most people pay off over a long period of time. However, certain easily accessible choices can help you save on interest and speed up your mortgage repayment. Here are five tricks to pay off your National Bank mortgage more quickly.

iStockphoto
iStockphoto
  1. Increase the frequency of your payments

This option is often considered the easiest option to incorporate into a budget. Simply increase your payment frequency from monthly to weekly or biweekly. And why not time your mortgage payments to coincide with when your salary is deposited? Continue reading

Be mortgage-free faster

Reduce your mortgage debt faster with these money-saving strategies:

Shorten your mortgage

Many homeowners aim to pay off their mortgages in 25 to 30 years. Reducing your amortization period by five or more years can make a huge difference in the amount of interest you pay.

Increase your payment frequency

With more frequent and accelerated payments, you may pay a little more each month, but you’ll pay your mortgage down faster, saving you interest costs over the long term.

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Take advantage of your mortgage prepayment options

Pay down your mortgage faster and save thousands of dollars. Here’s how: Continue reading