A car financed at 5%, a line of credit at 9%, credit cards at 19%…
Have you ever made a comprehensive list of your current debts?
Many Quebeckers prioritize paying off their mortgage, which is only natural. No one likes big debts. But, ask yourself, is it the most logical way to proceed if you have several smaller, high-interest debts that are costing you a fortune in interest?
Think about it, a mortgage will cost you between 2.60% and 3.50% at ongoing rates. Moreover, you can use the equity in your home to pay off high-interest rate credit cards and other personal loans.
If you want to remain financially healthy and not increase the overall time it will take to pay off your home mortgage, don’t put your consumer debts (credit card, car loan…etc) on the same amortization schedule as the rest of your mortgage. With divisible mortgages, you can keep the largest portion of your mortgage (the amount used to pay for your home) unchanged, while placing your consumer debts on a much shorter payment schedule.
This way you will be out of debt much faster and pay a lot less interest. If you know someone in this situation, send them this article!
The content of the present website is protected by copyright which is the exclusive property of Mortgage Planners – Mortgage Agency .