Best Times to Make an Extra Mortgage Payment

People need to realize that the behaviour in the real estate market in Canada in the past 10-12 years is not normal, nor sustainable. Housing, historically, has risen fairly close to the increases in real incomes (income adjusted for inflation) during 1950-2000. In the past decade real incomes have moved very little (if at all) while home prices have appreciated to staggering levels increasing the amount of debt individuals and families hold. Housing, just like the stock market, can become speculative very easily because of the emotional aspects of the purchasing process and the vast invested interests of industry to have home prices continually rise. Unsustainable and low interest rates also do not help.  Read More…

This article has 8 Comments

  1. Dale R

    I remember buying my first home at 21 with my girlfriend (now ex-). It was a great experience learning how this all worked and getting the first homeowner credti but now that i think back i wish i knew the information that is so freely available online. It would have made a world of difference to two naive buyers we were at the time.

  2. Liberty

    It isnt mortgage payments that get you (i’m completely paid up), its the always needed to pay property tax that is the real pain. I want to own my own land but i cant so unless someone can bottle this up into some kind of security to trade and earn interest on i am not going to bother.

  3. Garret

    I guess i am on the right path because everything it brings up we have already done to the T.

  4. Cory Mauzey

    I dont really equate owning a home like having a bond that earns 2-4% annually. Because of tubulent years like 2008 one can realistically expect something around 1%. At least for these pass 5 years.

    Better to put your extra cash in Index funds if you ask me.

  5. Edmund D.

    All these years and this is the first time reading about the Smith Manoeuvre. sigh. I guess i have some more reading to do seeing as how this could save me a lot of moola in the end.

  6. Sammi

    Hmm i guess this applies to our mortgage since i am paying bi-weekly. I tihnk i will have to call my bank in the morning.

  7. Anton Martinsen

    I still dont see the big hoopla of people needing to buy homes. Rent and you are better off.

  8. Darcy P.

    Interesting. I am thinking about buying my first home and plan on making use of the RRSP borrowig with no penalty to finance a bit of it. Nice to read somehting like this and give me more advice.

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