Haven't had one since 1988
- Last Updated:
- Sep 5th, 2015 11:33 am
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- SCORE
- eonibm
- Deal Expert
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- Aug 2, 2010
- 15193 posts
- 4912 upvotes
- Here 'n There
- gomyone
- Deal Addict
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- Jun 28, 2007
- 3863 posts
- 1026 upvotes
I find a good strategy to take advantage of the low borrowing rates, is to pay off your principal mortgage as quickly as possible and increase the amount you have available in a home equity line of credit in order to support household "working capital" used for other investments etc.
- divx
- Deal Expert
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- Oct 26, 2003
- 34631 posts
- 4089 upvotes
- Winnipeg
yeah, if for some ungodly reason interest rate spikes to double digit over night, i will just pull all my investment and dump it into itgomyone wrote: ↑I find a good strategy to take advantage of the low borrowing rates, is to pay off your principal mortgage as quickly as possible and increase the amount you have available in a home equity line of credit in order to support household "working capital" used for other investments etc.
- gomyone
- Deal Addict
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- Jun 28, 2007
- 3863 posts
- 1026 upvotes
The reality is that these low rates have been boon for anyone who borrowed (for a house or otherwise) over the last several years, especially if you were able to pay down the principal. For those who didn't for whatever reason, it sucks since you'd have to play "catch up" with rates already near a likely bottom and house prices that much more expensive.
- divx
- Deal Expert
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- Oct 26, 2003
- 34631 posts
- 4089 upvotes
- Winnipeg
if you borrowed before, RE was cheaper, now it is much higher so the monthly payment more-or-less stayed the samegomyone wrote: ↑The reality is that these low rates have been boon for anyone who borrowed (for a house or otherwise) over the last several years, especially if you were able to pay down the principal. For those who didn't for whatever reason, it sucks since you'd have to play "catch up" with rates already near a likely bottom and house prices that much more expensive.
- vesh1717
- Member
- Jan 13, 2012
- 246 posts
- 35 upvotes
There is no way the general population pays of their mortgage in under 10 years. That has to be an exception to the rule. But maybe I'm out of touch with how rich people are...
My guess is that richer folk are on here, as pretty much everyone I know is taking over 10 years. Only one couple had their's paid off, and their family income is close to 500k...
My guess is that richer folk are on here, as pretty much everyone I know is taking over 10 years. Only one couple had their's paid off, and their family income is close to 500k...
- gomyone
- Deal Addict
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- Jun 28, 2007
- 3863 posts
- 1026 upvotes
According to CAAMP, nearly 40% of homeowners in Canada don't have a mortgage and 13% of the approximately 600,000 homebuyers per year don't have any financing on their purchase. Obviously these stats don't represent a typical first time buyer or a relatively young buyer. More likely its older home owners who have built up equity in their homes over time.vesh1717 wrote: ↑There is no way the general population pays of their mortgage in under 10 years. That has to be an exception to the rule. But maybe I'm out of touch with how rich people are...
My guess is that richer folk are on here, as pretty much everyone I know is taking over 10 years. Only one couple had their's paid off, and their family income is close to 500k...
- vesh1717
- Member
- Jan 13, 2012
- 246 posts
- 35 upvotes
Looks like the average is mid 50s across different areas of Canada. This is more realistic.gomyone wrote: ↑According to CAAMP, nearly 40% of homeowners in Canada don't have a mortgage and 13% of the approximately 600,000 homebuyers per year don't have any financing on their purchase. Obviously these stats don't represent a typical first time buyer or a relatively young buyer. More likely its older home owners who have built up equity in their homes over time.
- sslinn
- Deal Addict
- Feb 4, 2008
- 3134 posts
- 177 upvotes
$316K Just under 6 years. This basically means nothing without income information, ages, kids, etc.
It is also dependant on that is a priority for people. Paying off mortgage or saving for retirement.
It would be interesting to poll the maximum amount of mortgage people qualified for compared to what they actually took.
It is also dependant on that is a priority for people. Paying off mortgage or saving for retirement.
It would be interesting to poll the maximum amount of mortgage people qualified for compared to what they actually took.
- flatblack [OP]
- Newbie
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- May 6, 2014
- 95 posts
- 5 upvotes
Did you max rrsp during that time?sslinn wrote: ↑$316K Just under 6 years. This basically means nothing without income information, ages, kids, etc.
It is also dependant on that is a priority for people. Paying off mortgage or saving for retirement.
It would be interesting to poll the maximum amount of mortgage people qualified for compared to what they actually took.
- sslinn
- Deal Addict
- Feb 4, 2008
- 3134 posts
- 177 upvotes
Mine is maxed every year. My wife has been contributing to a defined benefit pension plan for 20 plus years. We did buy back some of her time while paying off the mortgage.
Now that the mortgage is paid we are doing some planning with her RRSP.
Now that the mortgage is paid we are doing some planning with her RRSP.