Prepay Your Mortgage – It is good for your financial health.
I have been an advocate for prepaying your mortgage rather than investing for a few years now. One of the main reasons for this is it the best guaranteed after tax, risk free return you will achieve is paying down your mortgage.
A recent report by the Certified General Accountants Association of Canada reaffirms this and goes into a little more detail.
Please keep in mind that everyone has unique circumstances where prepaying their mortgage may not be their best option. One such situation is employer matched RRSP contributions. If your employer is matching you dollar for dollar it will be impossible to beat an immediate 100% return on your investment.
My family and I recently became debt free except the mortgage paying off over $90,000 of consumer debt in under 2 years using the debt snowball technique. It was by far the best thing we’ve ever done as a family! We are now attacking our mortgage with litereally everthing we have (including the revenue from my personal finance blog) to get rid of our mortgage as quickly as we can. Currently, we have about 3 years left before we truly are COMPLETELY debt free!