Good Morning, I'm hoping PFC can assist me with a big decision. We currently have 325K cash on hand are debating if we should lump some on one of our mortgages or invest it into the S & P in a non registered account.
Details
Mortgage 1: 875,000 purchase, balance 750,000. Interest rate at 6.34%. house appraised at 1.25 million
Mortgage 2: Purchase 1 million, balance 790,000, interest rate 5.9 percent. House appraised at 1.2 million.
Mortgage 3: built 2021, 1.2 million evaluation, 200k mortgage at 5.8 %. 1/3 ownership.
Both TFSA and RRSPs are maxed
Car loan: 50k purchase, 28K remaining balance, zero interest rate. Purchased before COVID.
Household salary: 400k
Mortgage 2: brings in roughly 40k yearly.
Monthly expenses, we are tight on cash flow, hence me leaning towards paying down one of the mortgages to refinance.
Partner wants to DC into S&P and let the market snowball over the years. Cash flow will increase thanks to yearly raises and bonus structure.
I personally find it difficult to swallow paying nearly 800K in interest over 25 years one either mortgage 1,2.
Thank you for the assistance.
Edit: we both have pensions as well ( DB & DC).
Details
Mortgage 1: 875,000 purchase, balance 750,000. Interest rate at 6.34%. house appraised at 1.25 million
Mortgage 2: Purchase 1 million, balance 790,000, interest rate 5.9 percent. House appraised at 1.2 million.
Mortgage 3: built 2021, 1.2 million evaluation, 200k mortgage at 5.8 %. 1/3 ownership.
Both TFSA and RRSPs are maxed
Car loan: 50k purchase, 28K remaining balance, zero interest rate. Purchased before COVID.
Household salary: 400k
Mortgage 2: brings in roughly 40k yearly.
Monthly expenses, we are tight on cash flow, hence me leaning towards paying down one of the mortgages to refinance.
Partner wants to DC into S&P and let the market snowball over the years. Cash flow will increase thanks to yearly raises and bonus structure.
I personally find it difficult to swallow paying nearly 800K in interest over 25 years one either mortgage 1,2.
Thank you for the assistance.
Edit: we both have pensions as well ( DB & DC).