Paying Off Your Mortgage Is NOT a Good Idea

Economics dictates that paying off your mortgage can cost you money!

Years ago, in the economic heyday of Milton Berle (some of you may remember Uncle Milty), Leave It To Beaver and The Andy Griffiths Show paying off your mortgage and throwing a mortgage burning party was seen as a triumphant moment of financial freedom.

In today’s economy, with mortgage lending rates lower than they’ve been in decades, why would you pay off your mortgage when that same money could be invested elsewhere at a higher rate?

You cannot defy the mathematical equation: if you borrow at a rate that is lower than your investment return rate then you make money.

de·fi·ance noun \di-ˈfī-ən(t)s, dē-\ : a refusal to obey something or someone : the act of defying someone or something (Merriam Webster)

You can look at it a several ways but I’m here to focus on 2 of those ways:

The first is straight investing in the mutual funds or stock market or anyplace else you know you can get a higher return. I’m not a Certified Financial Planner so that’s all I will say about it. If you would like to talk with a great Financial Advisor then let me know and I can connect you with a few of my trusted resources.

The second way (and in my humble opinion the much safer way to invest) is through real estate investments. Can you honestly say that if you could turn back the hands of time you wouldn’t have bought property years ago knowing what you know today about the average house prices in Toronto?  You may have several questions around owning investment property and I have lots of answers. I also have a great team of experts that can help you understand your current financial portfolio and help build a plan around your retirement goals. We can then build your real estate portfolio in several ways depending on your personal shorter (ie 5-10 year) and longer term wealth building goals.

Want to be on a beach or traveling and not worrying about your finances in your twilight years? As a Master Accredited Seniors Agent, I work with seniors in the housing market and I can tell you that many didn’t have the opportunity to plan for financial freedom in a way that could have given them a healthier financial picture today.  It’s hard to see and it really has me focused on how I can help my younger clients plan for their retirement years through real estate investment strategies. It starts with a conversation. Let’s talk.