Some great suggestions above but I would personally split the money. I would take a 100k and start a CCP portfolio and put the rest into my mortgage upon renewal next year. There are 3 reasons for that:raptorsfans wrote: ↑Oct 27th, 2017 10:59 am...
I have a $330K mortgage (locked rate at 2.11% until June 2018), and I have $350K cash (currently sitting in a saving account with 2.5% interest rate). Should I pay off the $330K mortgage first, or should I just put the entire $350K saving into the CCP portfolio? My friend told me to pay off the mortgage first before any investment, but my thinking is, if I can easily get more than 2.11% return from my CCP investment, why would I bother paying off my mortgage in a hurry?
What do you think?
1) CCP returns aren't guaranteed. High likelyhood of making more than your mortgage rate but it is certainly not guaranteed. The 2.11% actually becomes ~3% once you factor in your marginal income tax rate.
2) It's guaranteed that you wont get this rate upon renewal in June unless BOC drops interest rates instead of raising them (low likelyhood).
3) Peace of mind. You can always invest the money you pay towards your current mortgage payment.
Good luck in whatever you decide as investing/paying off debt are both good options.