Paying off Your Mortgage Instead of Investing in RRSP.

The Globe and Mail recently highlighted three important reasons why many Canadians should pay off their mortgage instead of investing more heavily in their RRSP. In this brief article, I have listed all three below:

1. Paying off your mortgage will net you a guaranteed return. Basically, whatever interest rate you are paying on your mortgage, you can see that as your "rate of return," or how much money you would be earning by paying it down sooner.

2. Interest rates on mortgages will rise, and when you go to renew your mortgage, it is probably going to be higher than current rates. So, hopefully, you can renew your mortgage soon to lock-in low rates, but if not, you want to ensure that you will owe as little as possible when rates increase in the future.

3. Paying off your mortgage "sets you free." This one is partially psychological, as people tend to enjoy the freedom that not owing debt brings. The dollars that you currently must allocate to your mortgage payments can be utilized to satisfy other needs and wants.

Any questions? Just send me a quick e-mail and I am glad to help.

Average MLS® Resale Price for Local Markets. Ottawa, Toronto, Halifax Up. Hamilton, Burlington, Vancouver, Victoria Down.

Halifax, Montreal, Toronto, and Ottawa realize housing price increases. Hamilton, Burlington, Vancouver, and Victoria on the downward trend. Average Vancouver property sinks below $700,000.

Average MLS® Resale Price for Local Markets 

City	December 2010	December 2011
Halifax	$ 254,228	$ 273,182
Saint John	$ 162,859	$ 165,770
Quebec	$ 250,880	$ 255,896
Montreal	$ 305,068	$ 319,458
Ottawa	$ 325,031	$ 335,330
Toronto	$ 433,887	$ 451,436
Hamilton/Burlington	$ 324,590	$ 314,940
Winnipeg	$ 239,183	$ 268,977
Saskatoon	$ 300,693	$ 312,834
Regina	$ 251,690	$ 273,919
Calgary	$ 381,308	$ 392,661
Edmonton	$ 310,885	$ 315,658
Vancouver	$ 700,773	$ 689,057
Victoria	$ 496,814	$ 469,484