Quote:
Originally Posted by Shazam
Sigh. Absolutely goddamned terrible advice. You know it's terrible when Sliver gives the best advice.
No, just because GICs are paying out @ 6% doesn't mean "you're throwing money away!" if you're paying down the mortgage.
Yeah, hey, so you're going to buy a GIC? What, $5k? $10k? $25k? How much mortgage do you have left? $400k? Yeah, paying down the mortgage is BY FAR the best thing to do, because the ** absolute ** amount of interest is way, way, way more.
The calculus only works if the amount of interest you're going to get on the GIC is more than the amount of the interest you're paying on the mortgage.
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Which in this case it is, as he is on a low interest mortgage for 3 more years.
I would look into how much of your mortgage you can pay down at once without penalty. That's another big factor.