Quote:
Originally Posted by MJK
Mortgage is $208,000
I really only want to pay 10% down right now and would prefer not to use a credit line as I am trying to pay one of those off as well.
I can put about $20,000 combining cash and rrsp money.
But I would try and double up my biweekly payments for the next two years if possible. Paying down a lot is really only an option while I live in the North. As soon as I go back to Newfoundland my pay gets cut in half and I will be making regular payments.
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If all you're doing is making double-up payments (not that that's not an awesome plan, because it is), you could lock in for 5 years and have the security of 3.75% for 5 years. Going closed with RBC you can make a double-up payment every time, AND still do the 10% lump sum once per year (and maybe you can negotiate the 10% lump sum to be higher - I've never tried personally). So it seems like they would have enough flexibility within the closed for the extra payments you want to do.
It'd just be the risk of locking in the rate vs. not. Your choice, really.