27 January 2011
One of the bank’s client, says: “I’m 44 and I’m trying to pay off my mortgage as fast as I can, so I double up my payments. At this moment investment is not so important for me”.
“Of course, there are many factors that can affect your decision, but the main things are the interest rate and the sum you can get in RRSP”, – he noted.
“It also depends on your age and life goals. Are you 30 now or 45? In addition to it, there may be other issues. Are you expecting an inheritance? Are you planning to support your parents financially?
It’s also recommended to consult a professional in order to see what’s best for you. The experts say, that if you don’t have a home of your own, it’s better to pay down mortgage and other your debts to get secured from the future rate hikes.
The deal is that borrowers got used to such historically low rates. So when they start rising, many people will have certain difficulties paying off their mortgages. Finance Minister Jim Flaherty mentioned it in his speech concerning new mortgage rules.