Conventional wisdom generally favours homeowners paying off their mortgage as early as possible since it's a guaranteed return on your money. Every dollar you pay toward your mortgage principal saves money on interest payments. But alternately if you decide to prioritize paying off your mortgage faster you could lose out on investment opportunities. There are pros and cons to each scenario.
Paying down your mortgage offers guaranteed savings equal to your interest rate, builds equity faster, and provides peace of mind from reduced debt.
Investing offers potential for higher returns, maintains liquidity, and provides tax advantages through RRSP and TFSA accounts.
Your personal situation matters most. Consider your mortgage rate, investment options, risk tolerance, and timeline to retirement.
A balanced approach works for many people. Use prepayment privileges to pay down your mortgage while also contributing to registered accounts.
Consult with a financial advisor to develop a strategy that aligns with your goals and circumstances.