Real Estate

Mortgage - How many years have you paid it off?

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[OP]
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May 6, 2014
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Mortgage - How many years have you paid it off?

Was wondering what is the typical length to pay off a mortgage? 10 years?

The shortest I have heard among my friends is 7 years (very challenging with 2 kids).

I am planning to pay mine off in 5 years but thats because its only for 240k and I can load up on consulting work.

Approved for $530k (minimal down with cmhc), but took $240k (amount after >20% down)

Would like to know what the numbers are for the RFD crowd.
30 replies
Deal Fanatic
Dec 5, 2009
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At today's interest rates I see no reason to rush to pay down a mortgage. Personally I would rather have that money grow in equity markets. Dividends alone can cover your interest and you will be better diversified.
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Apr 20, 2011
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flatblack wrote: Was wondering what is the typical length to pay off a mortgage? 10 years?

The shortest I have heard among my friends is 7 years (very challenging with 2 kids).

I am planning to pay mine off in 5 years but thats because its only for 240k and I can load up on consulting work.

Would like to know what the numbers are for the RFD crowd.
The faster the better. It'll get you a guaranteed tax free income(by paying less interest) and not gamble on the stock market.
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Apr 11, 2008
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flatblack wrote: Was wondering what is the typical length to pay off a mortgage? 10 years?

The shortest I have heard among my friends is 7 years (very challenging with 2 kids).

I am planning to pay mine off in 5 years but thats because its only for 240k and I can load up on consulting work.

Would like to know what the numbers are for the RFD crowd.
30 years. The trick is to pay off 90% very fast and then keep the last 10%. That way, you can always complain to others that you got a mortgage to pay with a straight face. :)
Deal Fanatic
Dec 5, 2009
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popbottle wrote: The faster the better. It'll get you a guaranteed tax free income(by paying less interest) and not gamble on the stock market.
I would generally agree with paying down debt as fast as possible in a normal rate environment. But assuming you have an interest rate of 2.X , there are better options, especially if you're have room in a registered account.

IMO you are better off to use that leverage to diversify. If your risk tolerance is low I would look at blue chips that pay healthy dividends. You can find 3-4% yield plus appreciation.

That's my 2 cents.
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May 28, 2012
11088 posts
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Saskatoon
We had a 25 yr amortization, paid off around 13 years. Weekly payments and a lump sum here and there. Our interest rate was considerably higher than today, but even if I had a mortgage right now, I would want to pay it off as quickly as possible.
Deal Expert
Aug 2, 2001
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To me it's a question that you cannot answer without knowing what you paid, what you earn, etc. As you mentioned, your mortgage is 240K and you plan to pay it down in 5 years. I paid mine off in 2 years, but I also had a smaller mortgage than you did because I bought 10 years ago (or more? I forget now it's been so long).

It is completely reasonable for someone to take 30 years to pay off their mortgage when they choose to spend their money on other expenses and their time with their family/friends/hobbies. It would be unfair to compare them to yourself who is going to work over 40 hours a week in an effort to pay down your mortgage as fast as you can.


What is important is that you are comfortable with the pace you are paying off your mortgage. Financial targets are unique to each individual because everyone has their own idea of what they want out of life. Good job if you can pay yours off in 5 years, but that doesn't make someone who takes 25 any better or worse. Just that something different works for them.
[OP]
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May 6, 2014
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30 years to pay off a mortgage sounds a bit ridiculous to me (which I know some people don't have other options for any number of good reasons like circumstances related to family, health, etc). I know you just tossed out that number to provide an example, but I always thought reducing your mortgage as 'quickly' as possible (of course as 'comfortably' as possible) is the way to go. My question was to get a sense of how long people usually take to pay off their mortgage (and later ask these ppl about why and how they did it). I didn't mean it to sound like it is a competition.
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May 28, 2012
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Saskatoon
flatblack wrote: 30 years to pay off a mortgage sounds a bit ridiculous to me (which I know some people don't have other options for any number of good reasons like circumstances related to family, health, etc). I know you just tossed out that number to provide an example, but I always thought reducing your mortgage as 'quickly' as possible (of course as 'comfortably' as possible) is the way to go. My question was to get a sense of how long people usually take to pay off their mortgage (and later ask these ppl about why and how they did it). I didn't mean it to sound like it is a competition.
It's really a matter of personal choice. Some people are okay with having a mortgage for as long as possible due to low interest rates and others pay it off and then borrow from their equity to invest. It was a pretty big sacrifice for us to pay it off early since we were also raising a young family at the time and putting money towards RESP's and RRSP's too. There is no right or wrong.
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Jan 17, 2002
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Just paying it down until it's pretty easy for us to carry on one income (the lower income), around 20% of the house value, hopefully within two years. Will re-evaluate then based on rates and the rest of our asset values.
Deal Fanatic
Dec 5, 2009
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flatblack wrote: 30 years to pay off a mortgage sounds a bit ridiculous to me (which I know some people don't have other options for any number of good reasons like circumstances related to family, health, etc). I know you just tossed out that number to provide an example, but I always thought reducing your mortgage as 'quickly' as possible (of course as 'comfortably' as possible) is the way to go. My question was to get a sense of how long people usually take to pay off their mortgage (and later ask these ppl about why and how they did it). I didn't mean it to sound like it is a competition.

I think the pay the mortgage as quickly as possible mentality is still based on old interest rates. If you are on a variable that is 1.8%, what is the benefit of paying that down quickly vs maxing out a TFSA or RRSP for example.

When rates rise you adjust your approach.
Deal Guru
Dec 11, 2008
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Mortgage is $370k. Plan is to pay off in 5 yrs but most likely 6.

Weekly payments and lump sum to get it down. 30 amortization.

We just want it gone asap and then start investing again. Doesnt work some. All depends on what u decide. No right or wrong.
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Apr 20, 2011
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flatblack wrote: 30 years to pay off a mortgage sounds a bit ridiculous to me (which I know some people don't have other options for any number of good reasons like circumstances related to family, health, etc). I know you just tossed out that number to provide an example, but I always thought reducing your mortgage as 'quickly' as possible (of course as 'comfortably' as possible) is the way to go. My question was to get a sense of how long people usually take to pay off their mortgage (and later ask these ppl about why and how they did it). I didn't mean it to sound like it is a competition.
That makes sense since for most people the 10% annually of a mortgage they are allowed to pay off early is much more than the amount that can be put into other types of accounts which have low annual limits.
[OP]
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May 6, 2014
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speedyforme wrote: Mortgage is $370k. Plan is to pay off in 5 yrs but most likely 6.

Weekly payments and lump sum to get it down. 30 amortization.

We just want it gone asap and then start investing again. Doesnt work some. All depends on what u decide. No right or wrong.
Will you be putting something into your RRSP or maybe even try to max it every year? What about your TFSA? I'm only asking because I'm in a similar situation as you (but smaller mortgage, and likely smaller income). I guess your plan would depend highly on your mortgage rate too whatever that is (ie., high mortgage rate + CMHC => get rid of that asap).
Deal Guru
Dec 11, 2008
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flatblack wrote: Will you be putting something into your RRSP or maybe even try to max it every year? What about your TFSA? I'm only asking because I'm in a similar situation as you (but smaller mortgage, and likely smaller income). I guess your plan would depend highly on your mortgage rate too whatever that is (ie., high mortgage rate + CMHC => get rid of that asap).
I have some in RRSP but not adding. My partner will add to RRSP but minimal to take advantage of work matching.

No TFSA adding either.

My mortgage rate is very low. Makes no real sense financially but we rather just get it over with.

We also have defined benefit pension at both jobs so saving 5 yrs earlier isnt a huge priority.
Member
Jan 13, 2012
246 posts
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How is everyone so rich here? Who pays off a 250 k mortgage in 5 years..insane.

Clearly your family income is like 500k per year.

Anyway, mine is 150 and will likely take me 8 more years, for a total of about 13. But I also have 3 kids..ching ching
Deal Fanatic
Dec 5, 2009
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vesh1717 wrote: How is everyone so rich here? Who pays off a 250 k mortgage in 5 years..insane.

Clearly your family income is like 500k per year.

Anyway, mine is 150 and will likely take me 8 more years, for a total of about 13. But I also have 3 kids..ching ching
Much easier if you are a DINK.
Deal Guru
Dec 11, 2008
10062 posts
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vesh1717 wrote: How is everyone so rich here? Who pays off a 250 k mortgage in 5 years..insane.

Clearly your family income is like 500k per year.

Anyway, mine is 150 and will likely take me 8 more years, for a total of about 13. But I also have 3 kids..ching ching
We are a DINK but I dont see how 250k mortgage in 5 yrs is a lot. Its less than $50k annually on top of reg mortgage payments and expenditures.

Say your family income is $10k after tax. You only need $4,200 a month to pay off $50k extra a year. Im sure people (2 people no kids) can live off of $5,800/month. And $10k after-tax is like $200k family income.
[OP]
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May 6, 2014
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In my case, I'm a SIOK(?) - single income one kid

Definitely doable if no car payments, low auto insurance, spend wisely, budget vacations - road trips, etc

Also helpful if kids are younger ... they get more expensive as they get older :D

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