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Mortgage Time - Provider & Term Recommendation Please
February 22, 2023
11:10 am
savemoresaveoften
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Save2Retire@55 said
@Loonie - Thank you. I agree. I decided to do 3 years. Best I found was with Desjardins 4.99% 39 months. Double payment + 15% lump-sum. Applied last night. They said this rate will go up today. Hopefully they approve.

And yes, I hate all kinds of debt even though many people keep saying "No rich person got rich on their own money" and encourage HELOC, etc. Different conversation but not my taste.

So I will go with 25 years but will double pay and do lump-sum plus decided to do 30% down payment.  

You have the correct approach, esp for someone who wants to retire at 55. One simply can NOT have debt of any kind incl mortgage post retirement in my mind.

February 22, 2023
4:17 pm
Loonie
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Well done! I think you have insulated yourself from potential disasters as well as is possible! And in 3 years you can pay down as much as you want and start again at new rate.

Just curious - did you get a place with rental potential or no? I recall you were considering it.

March 3, 2023
5:01 pm
Save2Retire@55
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@Loonie - No, I didn't. I am kind of happy though. The rental was more of my wife idea & I wanted to support her. The thought of having tenants wasn't appealing (and kind of scary) to me.

All the houses with rental possibility were either too expensive or had a bid war going on (Yes, even during this time). We put an offer on one (2 separate levels. 3 bedroom, kitchen, bath on main level and 2 bedrooms, kitchen, bath on the finished basement).

It was listed for $350K. We offered $385K but it got sold for $410K. Oh well.

This one we purchased is a single home and felt like home. It was listed for $349K. We did pre-inspection and offered $345K. They accepted our no-conditional offer (Good $285 inspection investment).

It needs some work here and there and a replace of the gas furnace but other than that it looked good. Roof done in 2021. Windows/doors in 2022.

March 3, 2023
5:01 pm
Save2Retire@55
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Just a quick update. We did the paperwork at Desjardins branch today.
39 months fixed for 4.99%.

I put 30% down payment but I will do whatever I can for the 15% allowed extra payment + the double payments.

Based on my calculations & if no disaster (including losing job for a long period of time) happens, we can be mortgage free in less than 6 years which allows us to accumulate and invest for a bit more than a decade afterwards in preparation for a retirement (Or optional work status) by 55.

March 3, 2023
8:37 pm
Loonie
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This all sounds very good. It sounds like there wouldn't have been much gain in terms of the mortgage if you'd bought the house with the extra unit; it would have been more of a long term investment. You may have come to a similar conclusion.

You've done a remarkable job of in arranging your finances to achieve home ownership and the life you want, and showing how it can still be done.

I agree; debt is a killer of savings. People wonder why I have the money I do, but I've only ever borrowed for mortgage and student loans, and paid them off as soon as possible. Always bought cars with cash, and bought only what I could afford in any category. Never had a budget; never needed one. These strategies make a huge difference.

March 4, 2023
5:13 am
savemoresaveoften
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Save2Retire@55 said
@Loonie - No, I didn't. I am kind of happy though. The rental was more of my wife idea & I wanted to support her. The thought of having tenants wasn't appealing (and kind of scary) to me.

All the houses with rental possibility were either too expensive or had a bid war going on (Yes, even during this time). We put an offer on one (2 separate levels. 3 bedroom, kitchen, bath on main level and 2 bedrooms, kitchen, bath on the finished basement).

It was listed for $350K. We offered $385K but it got sold for $410K. Oh well.

This one we purchased is a single home and felt like home. It was listed for $349K. We did pre-inspection and offered $345K. They accepted our no-conditional offer (Good $285 inspection investment).

It needs some work here and there and a replace of the gas furnace but other than that it looked good. Roof done in 2021. Windows/doors in 2022.  

$345k for a house in Quebec ! That’s like 1990 pricing in GTA !
Congrats !

March 4, 2023
9:30 am
Save2Retire@55
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@Loonie - Thank you. I learn a lot from you and others on this forum.

Yes indeed. It is possible and I am trying to teach others the concept of "You can do it if you plan and be consistent".

I did some mistakes along the way (Lost about $50K in stupid investing here & there but they are all hard lessons that will never be forgotten).

Yes, we don't do budgeting at all. We just spend responsibly and save anywhere we can to save, invest, or spend on things we value more (traveling)! And yes, I have bought 2 cars in my life. Both cash. I had scholarship so no student loan (lucky).

Mortgage is my first debt. Funny, we only use 1% of my Credit Cards + Personal LOC limit monthly (paid in full every month BUT I love the cashback and points and other benefits CC provide like rental car insurance or free lounge access)

March 4, 2023
9:33 am
Save2Retire@55
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@savemoresaveoften - GTA and Vancouver are crazy nonsense when it comes to income / home value. Same goes for Ottawa now.

And this home we bought is only 12 KM or 15-25 min drive from downtown Ottawa so not in the middle of nowhere in QC.

I could have got a 2020-21 built single home for the same price 30-40 km further but didn't feel the need of doing that considering I hate commuting & will have to drive my daughter next year to a bus stop to catch her 1 hour bus ride to school. No thanks.

March 4, 2023
10:30 am
AltaRed
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Loonie said
I agree; debt is a killer of savings. People wonder why I have the money I do, but I've only ever borrowed for mortgage and student loans, and paid them off as soon as possible. Always bought cars with cash, and bought only what I could afford in any category. Never had a budget; never needed one. These strategies make a huge difference.  

+1 Our journey as well.

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