April 2010 Mortgage Reduction Report

Although we are in the middle of April I am able to post the results for the whole month because we are not making any prepayments. There are a couple of reasons for this. I have a large tax bill because I do not pay any taxes during the year on my business income. I have increased my at source deductions with my full time employer so I will not have that issue next year.

There are some changed coming in the next couple of months with the way we handle and track our debt and net worth. We are moving our mortgage to National Bank to take advantage of their All in One product. Although we are still focused on paying down our mortgage I also want to tie that in to our net worth. We are still planning for the future and there may be an opportunity to take advantage of the RRSP rules in the future. We are also going to cash dam our rental properties. There will be more on that in the future, but basically it will turn no tax deductible debt into tax deductible debt which is advantageous.

I have learned some things and saved some money in the process of refinancing our mortgage. I will pass these tips on to you in the next few weeks. Our new way of banking should speed up our debt reduction plans.