Repay or Invest in second property

Being house rich but cash poor is not a great place to be when expenses come along.
And with interest rates lower than the rate of inflation you are investing in a strange way by paying down the mortgage.
That said over leveraging is not ideal either.
As for rental property being a landlord can be a cake walk or excruciating and expensive. Its a risk you are taking.

That said i don't have specific advice at this point because your age and income and family status would affect my advice.

digibytes2020 wrote: ↑ I am in tech and so is my spouse we are in late 30’s and make more than 200 k annually. I am not able to find any good reference to run numbers which can help us in making so calculated decision

That changes things.
I don't know if you have kids but at 200K it should not be a huge deal.

I would renegotiate the mortgage with the best rate you can find but make sure you can pay it off in total without penalty (none of that 10% per year nonsense, at least 20% per year so a 5 year term at rates below inflation means you can slap money on it and never have to pay a higher rate if paid off within 5 years). Frankly at this time you could put the money into one of 2% promos and make more than the mortgage interest, guaranteed.
I would max out your RRSPS, TFSAs and so forth. And a healthy job loss fund and liquid savings to draw on. You may even consider going for FIRE.
You might consider this 125K your multi use fund, in case of job loss or slap on the mortgage after 5 years of interest accumulated plus whatever else you pay off assuming your jobs let you pay above the monthly minimum. This keeps cash liquid but doesn't cost you anything, in fact you come out ahead.
You could invest it for 5 years but if your thinking of mortgage paying off you probably want something more guaranteed.

As for rental property do you want to be a landlord if you have a headache property?

In Ontario its very tenant oriented, they can almost get away with murder. The law assumes all landlords are corporations with billions of dollars and infinite time on their hands to fix problems and money to throw at them (hoping to make a profit someday). This is not an exaggeration, a tenant who knows how to play the laws can do everything short of burning down the house and your on the hook for it (and perhaps you can garnish their wages if they decide its worth working and paying you). You actually have to count on tenants who don't know the laws in and out and are not interested in screwing you. Hence its a big gamble. I have no idea how it works in Quebec.
But if all the stars align you can make decent money being a landlord, but one bad apple and your screwed. On the flip side you can buy REITs that aggregate the risk and have employees who handle problem tenants and you own a basket of properties hence one bad apple has limited downside effects (and they probably have lawyers on staff).

So my general advice is meet with a fee based financial planner, live below your means (but well), renegotiate your mortgage but be able to pay it down quickly (hash this plan out with the financial planner), consider having substantial savings so you can retire early if you wish (and if you don't you will be setting yourselves up for having a very healthy portfolio) and i would personally skip the income property bit at this stage and invest elsewhere, if you both work full time then you don't need the headache. But if you want to try it anyways consider if Quebec law works in your favour vs Ontario law and find other resources (such as online message forums) for landlords in the province you wish to invest in and ask them for advice.

digibytes2020 wrote: ↑ Many thanks and Appreciate your suggestions!

Your welcome.
I'd be happy to hear what you decide upon.

digibytes2020 wrote: ↑ Sure I’ll keep forum posted first thing I am planning to do is to take appointment of mortgage consultant!

Bear in mind the consultant will tell you what makes him the most profit, though i don't know how their fee structure works.
This is why i recommended a fee based financial planner, they have no conflicts of interest because they sell no financial products. But research whoever you choose carefully.

I just saw this thread, i only read part of the first page but i suspect its enough to get your feet wet as to what could happen.
eviction-professional-tenant-2424361/

digibytes2020 wrote: ↑ That’s scary .... i was reading about tenants law in QC and they are similar to Ontario

That sucks, so its not only an Ontario phenomenon then