Author Topic: Mortgage or invest ?  (Read 1112 times)

Rob1313

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Mortgage or invest ?
« on: September 22, 2014, 05:38:58 PM »
I'm new to this MM life, not too new.  I'm $1000 away form having no debt other than the mortgage I'm about to take on.  I bought at about 1/2 of what the lovely people at the bank told me I could afford, ha!  Because I bought pre-construction the property has already appreciated by about 20%. I got lucky in that regard. 

Here is the question.  I got a raise at work, a good one. I've already used it to pay all but the last bit of my consumer debt.  I can reasonably expect one or two more healthy raises before the end of my career.  10% per raise range is not unlikely with proper progression. I find myself able to pay an extra mortgage payment a month, or put some money into investments. 

I would normally retire in another 20 years (kicked out at 60 in my job) I have a good defined benefit pension plan.   I've never saved anything for retirement (besides contributions to the pension plan)  for a coupe of reasons, mostly financial in nature.  Now that this has relaxed for me I want to make the right choice.

In my shoes would you hammer down the really reasonable mortgage or invest? I'm in Canada so there is no tax break on interest paid.  I land in the 30ish percent tax bracket.  Due to my previous financial foolishness I only put 5% down on the property.

I've read all that I can find on the subject, I'm meeting with a financial planner this week to get some advice as well, I find that people without something to sell me give the most honest answers. I appreciate any advice.
« Last Edit: September 22, 2014, 05:40:36 PM by Rob1313 »

Cheddar Stacker

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Re: Mortgage or invest ?
« Reply #1 on: September 22, 2014, 07:45:31 PM »
Details will make all the difference here.

Interest rate on the debt.
Tax on investment gains.
PMI equivalent in canada?

Plenty of previous discussion here as well if you search the forum.