October 2009 Mortgage Reduction Report

October is coming to an end and we were able to make a prepayment of $4200 on our mortgage for the month. We have missed the mark of $4700 and not made up any of the shortfall in September. This leaves us with a prepayment short fall of $2700 year to date.

A big expense got in the way this month, but was worth it. The desktop computer we were using was 4 years old and it was time for a new one. With the government allowing a Capital Cost Allowance of 100% this year on computers for businesses the purchase just made sense. It will be a good deduction for my taxes.

I will be receiving some business income in November and we are hoping we can play catch up a bit. Putting down $6000 may be achievable. Looking ahead to Christmas and tax time there will be some expenses that may not allow for us to prepay the full $4700 monthly. C’est la vie!

The mortgage balance at the end of October is a little over $258,000. We have now paid off 18.5% of our original balance. Not too bad, considering we have only been making payments for 15 months.