Harpreet’s perspective
Real questions. Real properties. Real numbers.
You've got extra money. Beautiful problem to have. Now what? Put it against the mortgage? Keep it in savings? Invest it? Pay other debt? Buy another property?
The answer isn't automatically: ‘Pay the mortgage.’
Start With Other Debt and Savings
First, what other debt do you have? If you're aggressively paying down a relatively lower-rate mortgage while carrying expensive credit-card debt, we should probably have another conversation.
Then we look at your emergency savings. I don't love watching someone put every available dollar into the mortgage and then use a credit card when the furnace breaks. Liquidity matters.
Match the Choice to Your Goals
Then we consider your goals and risk tolerance. Maybe becoming mortgage-free gives you tremendous peace of mind. Maybe you're building an investment portfolio and want capital available. Maybe a combination makes sense.
Your mortgage may also have prepayment privileges that allow you to increase payments or make lump sums, subject to its terms.
Build Options, Not Just a Smaller Balance
I love the idea of paying a mortgage down faster. I just don't want to do it blindly. Because financial strength isn't simply having the smallest mortgage balance. It's having a financial structure that gives you options.