Quote:
Originally Posted by DiracSpike
You and others are right, GIC would be different. I mean sure, if you have three years left on a mortgage at 3% you'd be better off by a little bit by putting that in a three year GIC and making more. But ultimately it's still with an eye to paying off your mortgage and having that be your focus, with the GIC as a means to an end in that regard. Have to consider taxes on the interest as well.
|
Well if that tax issue is a concern, this is where bonds come in. I know they're more complicated, and heaven forbid people want to ask for help, however at this point you can get capital gains for a piece of that return and the tax efficiency there is fantastic!
Quote:
Originally Posted by Torture
I feel like the part we're missing here is that if you have the money sitting around in cash and haven't already put it on the mortgage, in a GIC, or in investments, you're probably not the type to be putting it in a GIC to get an extra 2-3% until your mortgage renews.
|
No reason someone couldn't start though. Even if you have an extra few hundred bucks a month, you could put that into a high-interest savings vehicle with no downside risk and get good interest rates now. By the time the three years comes up you have a little pot of cash there and can pay down the mortgage.