Note: this article was written with a Canadian audience in mind. In Canada, mortgage interest isn't tax deductible but the appreciation of your personal residence is tax-free. If you're from a country where mortgage interest is tax-deductible, you should adjust the mortgage rate accordingly. Also note that the comparison assumes a taxable investment account. Some tax deferred accounts (e.g. RESP) come with additional incentives (e.g. grants) that must also be considered.
Should You Pay Down Your Mortgage or Invest?
Should You Pay Down Your Mortgage or Invest?
Should You Pay Down Your Mortgage or Invest?
Note: this article was written with a Canadian audience in mind. In Canada, mortgage interest isn't tax deductible but the appreciation of your personal residence is tax-free. If you're from a country where mortgage interest is tax-deductible, you should adjust the mortgage rate accordingly. Also note that the comparison assumes a taxable investment account. Some tax deferred accounts (e.g. RESP) come with additional incentives (e.g. grants) that must also be considered.