Mortgage lump sum vs RRSP vs money market

J

jsalama

Guest
Age (Montreal)
Myself: 29
Spouse: 25

Employment
Myself: Sales Engineer
Spouse: Pharmacist

Gross Income
Myself: 80k
Spouse: 125k

Property
Family home: worth 350k, @ 2.65% weekly payments

Borrowings: None. 2 credit card paid in full each month

Savings
10k money market spouse

20k in emergency funds myself


My Question/s:
My wife loves shopping!!! Therefore i advised to her that we need a system to pay lump sum of 10k down every 3 months. She has been doing very well! I pay all the expenses with my salary and she saves the lump sum.

My question is: Is it a good idea to put all our savings to paying the Mortgage quicker? Should we be diversifying? We are not putting money in RRSP because of our new lump sum system.

Thanks for your input.
 
Whether to diverify or not is probably a decision you have to make yourself depending on your circumstances, for instance if you were to pay some of the money into a pension then you would receive additional tax relief on these payments and as you are both in your twenties it is a good time to start, generally speaking paying off your mortagage early is a very good idea and you can always reduce or take a break from the lumpsum payments as your mortgage reduces, at the rate you are paying 40K per annum you should see your overall mortgage reduce quite dramatically.
 
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