Guy pays off mortgage in three years

[KStache]

Awesome achievement even compared to the group we have here.

http://www.cbc.ca/news/business/mortgage-pay-off-three-years-1.3302229

[FrugalFan]

I've read some of his stuff on finance blogs. Good for him!

[Kitsunegari]

"I don't know how he did it," says Eunice Huot, who has a $350,000 mortgage. "I actually sat down and tried to plan out my finances and see if I could actually do something like that but, no."

Translation: 'I saw how he did it, but I really don't want to live that life.'

[Frugal D]

There is a very real chance we'll have ours paid off in May which would be 1.67 years since the origination date. Even if that does not happen, it will be paid off in no more than 3 years.

In anticipation of your questions:

-The loan was a HELOC where our bi-weekly paychecks are directly deposited
-I work in sales where it's feast or famine and right now it's feast
-It was a very large amount and I have been fortunate to have a string of consecutive great quarters
-I have gone back-and-forth between paying it down versus investing, but with a floating rate of L + 3.50% I prefer the security of eliminating the debt. I am 99% sure we'll see negative rates before we see a rate hike, but like Warren Buffet and Mike McDermott say, "always leave yourself outs."

Where I differ from the article, however, is that I would never have a "mortgage payoff party". No one outside of my wife will ever know.

[Frugal D]

Translation: 'I saw how he did it, but I really don't want to live that life.'

Great translation and even greater avatar. 

[mjoystache]

Of course, the majority of the comments are a prime example of the complainypants trying to justify to themselves why it isn't possible for themselves or a "normal" person to do the same thing. Someone actually commented on how this guy was never going to find a wife because a woman wouldn't want to live so frugally. Seriously? And then the rest complain he could only do it because he didn't have a wife and kids. Kids, sure yeah, that would be harder. But I would argue that having income from a second person would make it much easier. Honestly the anti-mustianism of the comments nearly made my head explode.

[Tjat]

There are parts of this that sound mustachian - ie living in the basement apartment and renting out the main house. However, working 100 hours a week and seemingly sacrificing your social life for 3 years is a bit much. I'm surprised he even had friends at his mortgage burning party. That time of your life is important to save, for sure, but also to experience life, and meet people - perhaps a spouse. To bury your head in 100% work for 3 years to abolish your only debt seems more like a mental illness stemming from his mother's troubles than urge to be a true mustachian.

I hope I'm not "Chris22'd" for what seems to be a contrarian viewpoint...

[justajane]

What are interest rates like in Canada? If it was anything less then 4-5%, it probably would have made sense to invest that money for long term gain. I'm not trying to diminish his accomplishment, but a paid off home mortgage just locks your money into an asset that likely doesn't appreciate as fast as the money would grow in the market.

[lostamonkey]

What are interest rates like in Canada? If it was anything less then 4-5%, it probably would have made sense to invest that money for long term gain. I'm not trying to diminish his accomplishment, but a paid off home mortgage just locks your money into an asset that likely doesn't appreciate as fast as the money would grow in the market.

Mortgage rates are probably lower than that. Mortgage interest is not deductible in Canada though and it's only possible to lock in an interest rate for 5 years at most. Either way, I agree he probably would have come out ahead if he had invested the money.