Second home plan advice

stoobloo

Hi all,

We have a 5 year plan to either pay off as much of our current mortgage (with no penalties) as possible over 5 years before we look to purchase/move to a new property.

Would it be best to pay a portion toward paying off our current mortgage and a portion to put aside for a deposit or just put all our eggs in one basket and put all money in to the current mortgage?

I look forward to your advice.

Regards.

Stoobloo

bobbyreyes523

As per my knowledge, it’s not a good idea to put all your money into mortgage. Second home mortgage loans are available at low interest.You can consult with a mortgage consultant firm to get the best possible solution.

I prefer taking any financial advice from Canadalend.com regarding mortgage loans.

PBA

If your plan is to sell the current property and move then both options would achieve the same thing, whether you had a smaller mortgage balance or a larger mortgage balance and more savings you would end up with the same amount of deposit for the new purchase.

Thrugelmir

What rate of interest are you currently paying? Initially at least overpaying the mortgage is probably the way to go.