Quote:
Originally Posted by you&me
Wait... We don't have all of the details, but there are some pretty safe assumptions that can be extrapolated depending on the specific case.
Like if you have a spare $25k sitting around and can put it in a GIC at 6%, or pay down your 3% mortgage by $25k, the interest earned in the GIC will be greater than the interest saved by the reduction in the mortgage principle (disregarding taxes, etc).
To argue otherwise would demonstrate a poor comprehension of reading math. 
That all said, the peace of mind on having less / no mortgage is priceless.
Edit - opendoor beat me to it. |
Don’t forget tax on your 6% is treated like cash so if you are on the CP bracket with a 43%-48% marginal rate that 6% is more like 3.4 so is only marginally better. If I’m a TFSA at those spreads it’s much more meaningful.