Why it is NOT a good idea to pay off your mortgage right now?

Date Posted: October 7, 2020

I am sure that it can be very tempting to want to pay off your mortgage right now, but it might not be you best option.

There are though, benefits to paying off your mortgage. Sure, paying it off gives you the feeling of extensive financial security. The feeling of having the ability to pay off your mortgage in full feels amazing. This provides the ability to focus on other financial endeavours or live with less monthly finances. Paying off your mortgage may feel like a safe move but there are some positives to paying off your mortgage over time.  

To start, interest rates are at an all-time low when renewing or refinancing your mortgage. By paying for your mortgage over time you have the opportunity to place your finances into other priorities. With rates being so low you would earn more on your investments if you are using cash to paydown your mortgage. Especially in current times, if you do have extra cash it may be better to keep it aside for now until things settle down and you are in a better place financially.  

It is a great time to refinance as rates are so low, and you do not have to liquidate investments that are either down OR earing you more than 1.89% like a 5-year fixed rate.

To read more visit the full article from financial post here.

Contact your Mortgage Broker today for more information