Or can buy a very nice 500k condoThis quote is hidden because you are ignoring this member. Show Quote
Or can buy a very nice 500k condoThis quote is hidden because you are ignoring this member. Show Quote
I am user #49Originally posted by rage2
Shit, there's only 49 users here, I doubt we'll even break 100
Depends on the type of people you are:
If putting $100k down means your other $100k goes into your savings plan i.e., your G-Wagon, that's not a savings plan nor an investment.
That type of person should max out everything they can towards the loan as self discipline is poor.
Why is option D even an option? Putting hundreds of thousands in a savings account is rarely the correct answer to any question haha.
if it's a rental, do the 150k and jack up the rent like most landlords.
If the kids are out of the house and you only have $200k… put it all down. Your track record is poor
I assumed he meant an investment that he didn't want to specify.
One wrinkle, if you aren't beyond baller and haven't been filling your RRSP room, is that you could invest in RRSP with a significant portion, and use the tax return from that to plow back into prepayments on the mortgage. Some folks have hundreds of thousands of dollars of RRSP room. Might need to spread that over a few years to make it make sense then, and of course, that becomes something that requires ongoing management and work to follow up on, which people are usually bad at.
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Yes probably that.This quote is hidden because you are ignoring this member. Show Quote
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This is math that needs to be considered when considering high ratio vs conventional mortgage. Rates will be different and there is CMHC fees to consider. The question is, if the rate discount you get offsets the fees and results in a lower cost of borrowing putting you in the money.
An option i would consider would be a blend of C and D, if the numbers make sense:
- Minimum mortgage for the better rate
- Investing balance of savings in a medium risk investment
- Maximizing lump sum/principal payments using the investment as the source
Id run the 3 scenarios in a spread sheet using some conservative assumptions and go with what ends up costing the less over all.
Divorce happens. I was set back a ways due to this. Good thing I'm prepared to never retire.This quote is hidden because you are ignoring this member. Show Quote
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A and choose lowest amortization period you can afford.This quote is hidden because you are ignoring this member. Show Quote
Your kids are out of the house which can potentially means you are at the tail end of active income years (unless you had them while you are in your teens).
And like Killy said, if you feel like you want extra $ to invest in something, HELOC and write off interest against your income.
To be fair I actually meant to put investments with it, but never went back to do it when I saw it.This quote is hidden because you are ignoring this member. Show Quote
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This is interesting and since I'm not a finance bro, have no idea what you mean by writing off the interest against your income, never heard of this before.This quote is hidden because you are ignoring this member. Show Quote
The smith maneuver
Pretty much this. Insufficient data to make a informed decision.This quote is hidden because you are ignoring this member. Show Quote
But if I was to pick one. Then it would be A, but on a 30 year mortgage. But pay it off like a 25 year with extra payments.
Also not a Circle Jerk nor a Dutch Rudder for @SKR 's benefitThis quote is hidden because you are ignoring this member. Show Quote
https://www.investopedia.com/terms/s/smith-maneuver.aspThis quote is hidden because you are ignoring this member. Show Quote
The basic is, you are trying to make sure you convert debt with interest isn't tax deductible (mortgage) to one that is (HELOC).
Last edited by Xtrema; 05-22-2024 at 03:59 PM.
finally beyond understands the power of the heloc lol very nice stanley morgan xtremaThis quote is hidden because you are ignoring this member. Show Quote
I am user #49Originally posted by rage2
Shit, there's only 49 users here, I doubt we'll even break 100
I wouldn't really consider Smith maneuver until TFSA and RRSP are full though, which isn't likely if there's only $200k for down payment when kids are moving out.
Originally posted by max_boost
Hey baller, any problem money can solve is no problem at all. Don't sweat it.
Almost 30 years later, I am done with all the mortgages. Time to live large than paying the gov.This quote is hidden because you are ignoring this member. Show Quote
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Also this. Make sure your run out of legit shelters first.This quote is hidden because you are ignoring this member. Show Quote