Should she pay her mortgage off?
Let's assume that I have a 5 year mortgage of 2.25% (fixed closed), and I have 10 years left. Please do not take into any consideration what the following 5 year mortgage rate will be for the purposes of this question. (yes, I realize this is a 'real' variable, but please bear with me).
Let's also assume that I have a TFSA that pays 2.25%. Let's also assume that money that would be going towards the mortgage is going purely towards the TFSA and that there is no appetite here for trying to beat the 2.25% by investing.
Is there any advantage from an interest perspective to pay off the mortgage as opposed to pile all that money into the TFSA?
My immediate thought is that paying off the mortgage would have an advantage, again, purely from a total interest payable perspective as it's compounding (or whatever). Finance gurus - can you please share your thoughts? TIA