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Selling high returns for low-rate debt doesn't add up
Related: Paying down an income propertyI do not recommend withdrawing from a higher earning investment to pay down a lower cost debt. That would not be effective and there may be other fees associated with that strategy including possible deferred sales charge fees or maybe taxes (if RRSP money is involved). If you have surplus cash flow, and no other high-interest consumer debt, then it could be a good strategy to increase the bi-weekly payment up to double the base amount. You can increase the payment off contract—and without including the new accelerated amount in the renewal contract. That way, you could stop the accelerated portion of your payments if your circumstances changed.
Related: Using RRSP money for a renovationJust make sure you find an additional top-up amount that will be consistent and not cause any hardships elsewhere in your finances. A mortgage professional will be able to provide you with all the options to consider. MORE ABOUT ASK A MONEY COACH:
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