# Debt or Down Payment??



## w0nger (Mar 15, 2010)

Do i eliminate the remaining $10k in debt that i have at 10.99% or make minimum payments instead for the next few years and use the money to make a 20% down payment on my house to avoid CMHC ...?? I'm just not sure what's smarter or better... I would still have the clear out the remainder of my RRSP's through the HBP...


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## FrugalTrader (Oct 13, 2008)

I would calculate the amount of interest that your saving by paying off your debt now relative to the CMHC fee charged. What is the size of the mortgage? How about the debt?


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## w0nger (Mar 15, 2010)

12K at 10.99% 

I will have a mortgage for 192K at 4.3% 5-year fixed amortized at 35 years. That's already with 10% down right now. if i get to the 20% down, it'd be a mortgage for 178K, same terms.


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## andrewf (Mar 1, 2010)

I'd have to say you should repay the loan, or at least refinance at a lower rate.


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## sprocket1200 (Aug 21, 2009)

definitely refinance that rate!

and 35 year mortgage?? you gotta be kidding me. oh wait, let me guess, you expect to pay it off sooner than that, right??


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