Quote:
Originally Posted by DoubleK
I didn't mean to lock it, I meant to raise the payment amount so I'm paying more of the principle down because the rates are low.
How does one figure that out vs increasing RRSP contributions.
Currently, I increase RRSP contributions at the same rate as my salary increases.
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I think the standard answer for that is to max your rrsp contributions and use the resulting tax savings to pay down debt...your most expensive debt first (credit card or unsecured loans) then your mortgage.
Things are a bit different now with a tfsa. If you can, make sure that's up and running with some dividend or interest baring holdings. Any US dividend paying stocks should be held in your tfsa. Simply holding cash isn't the end of the world now either.
If you're wondering if your return in your rrsp will be better than the 3-4% you're paying on your mortgage, that's anyone's guess.