[Feebz13]

Hi CMF,
Have to thank you for all your help on our previosu post : http://canadianmoneyforum.com/showthread.php7801-please-help-prioritize-our-priorities

A quick update/summary:
Age 29/31
Assets:
Daily Banking Account: 5k
Savings 30k
House 246k (purchase price 2008)
TFSA - 20k in couch potato
5k in savings account


Liabilities:
Mortgage 176k

In the time of our last post we've made pretty good strides (I think). We've paid off all our student debt/LOCs, got married, and replaced my 400,000km car with a a newer used car.

We're currently over-contributing to our mortgage by about 25% per payment (bi weekly).
We've got 15k of TFSA contribution room to use up in the coming year.

Our plan is to max out the TFSA room with the couch potato strategy and anything above and over our 30k emergency fund will go to pay down the mortgage. Current mortgage rate is 3.77 with 1 more year left on term. Long term plan is to move closer to the city (likely 2 years away), and likely start a family around that time.

Should we focus all our attention on paying down the mortgage and leave the TFSA room or aggressively fund the TFSA and then concentrate on mortgage? Or should we take a balanced approach.

Any insight would be appreciated.

 

[Feebz13]

I am all for the balanced approach with a slightly higher weighting to the mortgage.

My reasoning is that the op has a really great income, and based on how far they came since the other post, they have discipline. Way to go on your progress OP.

Paying off the mortgage at 3.77% is pretty good rate of return which is gaurenteed. Also puts them in a better position whe they decide to have a family. I also would put some for the Tsfa as that will help for the family and is a good buffer.

Thanks for all the responses. And thanks for the kudos. We're trying not to keep up with the Jones' and live within our means.

We're leaning towards the above approach. Approximately 80% to mortgage 20% to TFSA. Always good to have confirmation and support!

Thanks again.