Why paying off your mortgage may not be the best idea

By WM

Paying off your mortgage may not be the greatest idea after all, according to a report from the Financial Post.

Reports of debt being out of control are constaly abounding. If they aren't coming directly from the federal finance minister, they're likely from Canada's central bank. However, the issue of riding debt is not one to ignore.

During the last quarter, the household debt to disposable income experienced a slight decline, but it’s still at approximately 164 per cent, which is very close to an all-time high.

With interest rates across the nation at their lowest levels in years, many are wondering whether or not they should work towards fully paying off their mortgages. The notion of investing the money elsewhere is enticing to Canadian homeowners, especially if it can be done at a much higher rate.

The strategy is not without its risks, but if done properly, it can pay off nicely in the long run.

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