Quote:
Originally Posted by CivicBlues
Unless your mortgage rate is >5%, I'd actually put the money in a TFSA/dividend producing ETFs and have it earn somewhere along the lines of 7% for a few years. Then take that money and put it into your put it towards your mortgage when you renew. Unless it's of course, at an even lower rate.
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Agreed - if you have room to either add to your TFSA or your RRSP and your mortgage is in the typical 3-4% range, you are doing yourself a disservice by paying it down when you could instead increase your investments on a tax efficient basis.
If the choice was a 5% mortgage or a taxable investment account, the choice would be more slanted towards repaying debt.
-Mark