Pay down mortgage or grow rrsp?
My wife and I have a $450,000 mortgage on our house, we both have very good pension plans and are close to mid forties. I think it would make more sense to save all of our money each year to put down on our mortgage, which is at 2.5% for another 4 years, to pay that down as quickly as possible rather than invest in our rrsp of this point, since we both have good company pension plans... does this make sense?
We are currently able to save 35,000 each year plus the $15,000 that automatically goes towards our mortgage. So in one year we will put down about $50,000 in total to our mortgage.Our investors are telling us to invest half in rrsps and half towards the mortgage, but to me this doesn't make sense because with rising interest rates on housing, once our mortgage term expires we're going to be paying higher interest on a larger lump sum mortgage. I would rather pay this off as much as possible and let our pension plans take care of our rsps in the future.