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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I'd be careful about using RRSP money. You get charged a withholding tax of a minimum of 10% for up to $4,999 and up to 30% for larger amounts and it'll count as income so you will most likely be paying tax on that portion as well.
Paying up to a 30% penalty to pay down a mortgage at historical low rates of under 5% doesn't seem like a good trade-off in my books.