When shopping for a mortgage, most Canadians ask one question, “What’s the rate?”
Of course, interest rate is important, but what if we asked a different question, “How soon can I pay off my mortgage?”. We call this “Mortgage Freedom Day” and for Canadians in the Tax Deductible Mortgage Plan(TDMP), this date comes many years sooner.
The key is extra payments. Many Canadians accelerate their mortgage by converting to bi-weekly payments or making an occasional extra payment, but the Tax Deductible Mortgage Plan forces extra payments every month!
By greatly accelerating the pay down of the mortgage with self funding extra monthly payments and annual Tax Refunds, Mortgage Freedom Day can arrive in nearly half the time, which translates into a future savings of tens or even hundreds of thousands of dollars.
TDMP uses CRA’s Cash Damming technique to make this possible. Read on for more details…
