Personal Finance

Locked: Pay down mortgage or grow rrsp?

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  • Jan 16th, 2023 10:53 am
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Oct 16, 2008
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Super_Chicken wrote: I was team "pay down your mortgage" until I saw this post.

It makes perfect sense to get a GIC. Lock in a 4-5% GIC. Time it so you get all the money back before you have to renew your mortgage. Makes perfect sense and is the same level of "Risk" as paying your mortgage today. Except you're getting the benefit of the locked in low mortgage rates, and great return of higher market interest rates.

Anyone ignoring this feedback is naïve.


xhbsSS you're using too specific an example. If you dumb down what you are saying it's as simple as follows.



Scale this for the $450k mortgage and you're talking a larger chunk of change. Yes you'll pay tax on the GIC, but you should still come out ahead.
Arguably this would be "less risky" than paying down your mortgage because if you lost your job you still have access to the GIC money. Once you pay down the mortgage it's more hoops to jump through to try to borrow it and at a much higher rate.
the "peace of mind of having no debt whatsoever!!!!111xxx3er" crowd is just plain......dumb. I bet these people also pay off their credit cards the moment the transaction posts, instead of at the bill due date. LOL
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Mar 10, 2018
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does it matter?
too much math here is three much for me. Have a nice day.

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ilove wrote: the "peace of mind of having no debt whatsoever!!!!111xxx3er" crowd is just plain......dumb. I bet these people also pay off their credit cards the moment the transaction posts, instead of at the bill due date. LOL
You obviously haven't lived with a large amount of debt through a few economic hardships.
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FarmerHarv wrote: You obviously haven't lived with a large amount of debt through a few economic hardships.
I concur my friend! I have had my share of economic hardships, i am paying down my debt. i have had good credit, bad credit, and even no credit. i know how important it is to have a good credit and be good with the banks
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May 11, 2014
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FarmerHarv wrote:
You obviously haven't lived with a large amount of debt through a few economic hardships.
But it doesn't matter in this case. Mortgage level is set. Rate is set. GIC level is set. Investing in the GIC poses zero risk. PayIng down the mortgage here demonstrates a guaranteed cost and these posters need to be accountable for that. Suggesting posters not to go GIC means leading them down possibly hundreds or thousands of dollars in interest.

This in my opinion is irresponsible and infact shameful. The "peace of mind" posters sell here could cost people further. At a time of higher costs, why is peace of mind in the form of higher overall debt? Unless these posters help pay for this cost, they should not conviince others to follow.
Last edited by xgbsSS on Jan 16th, 2023 9:30 am, edited 1 time in total.
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callernamet wrote: too much math here is three much for me. Have a nice day.

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5.00% > 1.69%

It helps to think of the open side as an alligator's mouth eating the larger number!
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Feb 8, 2014
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xgbsSS wrote: 5.00% > 1.69%
But think of the children!
They will (somehow) be happiest if you reduce the value of your estate :D
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
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does it matter?
5.00% > 1.69% . That is what Nash was thinking. but something ate his brain.may be hamburgers.
Life. I am sure Nash will be feel better with extra 50K interest.
"Laws for thee but not for me!" I will keep on jet-setting around the world. Spend as much as I can and enjoy vacations Free at Friends estate. Do as I do not as I say. I used to pay for my vacation until I met my hero.
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xgbsSS wrote: But it doesn't matter in this case. Mortgage level is set. Rate is set. GIC level is set. Investing in the GIC poses zero risk. PayIng down the mortgage here demonstrates a guaranteed cost and these posters need to be accountable for that. Suggesting posters not to go GIC means leading them down possibly hundreds or thousands of dollars in interest.

This in my opinion is irresponsible and infact shameful. The "peace of mind" posters sell here could cost people further. At a time of higher costs, why is peace of mind in the form of higher overall debt? Unless these posters help pay for this cost, they should not conviince others to follow.
I know this is RFD and all, but sometimes it isn’t just about the money.
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FarmerHarv wrote: I know this is RFD and all, but sometimes it isn’t just about the money.
Then what is it? This is a financial situation where the difference is significant. Getting quoted as schizophrenic doesn't help.
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xgbsSS wrote: But it doesn't matter in this case. Mortgage level is set. Rate is set. GIC level is set. Investing in the GIC poses zero risk. PayIng down the mortgage here demonstrates a guaranteed cost and these posters need to be accountable for that. Suggesting posters not to go GIC means leading them down possibly hundreds or thousands of dollars in interest.

This in my opinion is irresponsible and infact shameful. The "peace of mind" posters sell here could cost people further. At a time of higher costs, why is peace of mind in the form of higher overall debt? Unless these posters help pay for this cost, they should not conviince others to follow.
Drop it.

I tried to drop my opinion but keep seeing yours. You have your opinion, I respect that. Can you respect others? Each person, each region, each household has their priority. You have yours, they have theirs, I have mine!

This thread is getting too long for wrong reason. OP is laughing :)

Mods, can you lock it up, please.
...
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teoconca wrote: Drop it.

I tried to drop my opinion but keep seeing yours. You have your opinion, I respect that. Can you respect others? Each person, each region, each household has their priority. You have yours, they have theirs, I have mine!

This thread is getting too long for wrong reason. OP is laughing :)

Mods, can you lock it up, please.
I find it interesting that it is always the irrational ones that want to have the last word and try to talk others into walking away so they can get it.
If your position can stand scrutiny you would not need to convince others to walk away or get threads locked to stop people from having free speech.

The mods however will lock threads at this point as irrational is usually the loudest voice.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
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xgbsSS wrote: Then what is it? This is a financial situation where the difference is significant. Getting quoted as schizophrenic doesn't help.
Time to chill. I always respect your posts and position @xgbsSS even if we don't exactly align, so I'm out.

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