Should I pay off my mortgage faster or invest the extra money?
Quick Answer
Short answer: If your mortgage rate exceeds expected investment returns, pay the mortgage first.
Detailed Explanation
With mortgage rates around 4.5% and stock markets averaging 7–10% historically, investing often wins mathematically. But guaranteed mortgage paydown beats uncertain market returns for risk-averse savers.
Consider taxes: mortgage payments aren't deductible, but investment gains get preferential treatment in non-registered accounts.
- Max out TFSA/RRSP room first—they're tax-sheltered
- Peace of mind has value beyond spreadsheet math
- Split the difference: do both simultaneously
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB
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