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Originally Posted by Dominicwasalreadytaken
....Of course, the way interest rates are right now, every penny I put against the principal of my mortgage yeilds only a 5% ROR or so. ..
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although, when you save a dollar outside an RRSP, the govt comes and takes $0.40 of all the interest you earn. whereas if you put that dollar down against your mortgage, you gain $1.00 of equity that can be used later via a HELOC if required.
i dunno, i got tired of paying extra taxes, so i saved up enough cash to ensure i wasnt living pay cheque to pay cheque, covered my RRSP's and then decided to ramp up my mortgage payback, instead of just adding more cash to my portfolio. since i am a rather unknowledgeable investor, i decided to use this route.