HomeMortgageShould You Rush to Pay Down Your Mortgage?

Should You Rush to Pay Down Your Mortgage?

With the prime rate in Canada sitting at 4.70%, mortgage interest rates have been trending upwards rendering home ownership increasingly unaffordable for many Canadians. Unsurprisingly, rising rates have some homeowners feeling the urge to quickly pay down their mortgage to reduce the cost impact.

As with any financial decision, it’s important to take the emotion out of it and think through a strategy that will serve you well over both the short and long term. Putting extra payments towards your mortgage over and above your monthly amount can help. It reduces your total interest payments and could even shave a few years off your total amortization. But while paying down what is likely your largest form of debt may seem like the best way to relieve your money anxiety during challenging economic times, it is not necessarily the best way to funnel your…

Read more at www.morningstar.ca

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