# When was your mortgage paid off?



## showmethemoney45 (Feb 27, 2015)

Just curious...I've read lots of articles about paying off your mortgage first but then I read about how important it is to start investing early (like your 20s). Who has their mortgage paid off in their 20s? When did you start seriously investing? My curiosity questions are:

1. When did you get your mortgage paid off?
2. When did you start investing seriously?
3. How old are you and how many kids do you have?

Go Flames Go!


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## newfoundlander61 (Feb 6, 2011)

1. Paid off my mortgage back in 2007.
2. Started investing seriously 2 years ago using a TFSA.
3. 53 years old married with no children.

* Have been receiving a Defined Benefit Pension since 2000, part of the reason for the serious investing delay. Decided to post although I did not pay off my mortgage in my 20's. 

Go Flames Go!


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## nobleea (Oct 11, 2013)

1. paid off primary residence mortgage last year.
2. some might say we haven't started investing seriously aside from the forced work DP/DC plans
3. avg age 34.5, 1 toddler


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## AltaRed (Jun 8, 2009)

1. Age 40
2. Age 40
3. Old fart, retired, but raised 2 kids on one income.


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## RBull (Jan 20, 2013)

1. 35 - (5+ years)
2. age 22
3. 55 now retired- no kids


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## pwm (Jan 19, 2012)

1). Age 35
2). Age 35
3). I'm also an ROF. (Retired old fart), with 2 adult children with 3 grandchildren. Also we did it on one income.


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## Moneytoo (Mar 26, 2014)

1. 45
2. 46
3. 47, 1 child


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## 0xCC (Jan 5, 2012)

Mortgage paid off at age 38, first house bought at 24 (Edit: paid off mortgage after purchasing third house at 35 that was 3x the cost of the first house).
Started DIY investing around age 30 but invested through an advisor between 24 and 34, didn't dump the advisor right away but stopped adding money to that account.
Married with no kids.


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## iherald (Apr 18, 2009)

Mortgage paid off at 35. 
Maxed out RRSP each year since 27
Currently 36 no kids.


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## gibor365 (Apr 1, 2011)

1. Took mortgage 2000, paid off 2006
2. 4 years ago
3. 48, 2 kids


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## Jon_Snow (May 20, 2009)

1. Mortgage taken in 2002 - paid off in 2008
2. Always invested and paid off mortgage aggressively - it's OK to do both you know
3. 43, retired :biggrin:, kids - are you kidding me? D.I.N.K's 4Life!!!!!


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## 0xCC (Jan 5, 2012)

Jon_Snow said:


> 1. Mortgage taken in 2002 - paid off in 2008
> 2. Always invested and paid off mortgage aggressively - it's OK to do both you know
> 3. 43, retired :biggrin:, kids - are you kidding me? D.I.N.K's 4Life!!!!!


Ummm, aren't you a S.I.N.K now?


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## Jon_Snow (May 20, 2009)

0xCC said:


> Ummm, aren't you a S.I.N.K now?


Well, I guess you could say that, but since I manage our investments, I consider our dividend income to be my SALARY.


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## Ag Driver (Dec 13, 2012)

Noting how many years it took you to pay off your mortgage would be nice added value.


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## KaeJS (Sep 28, 2010)

showmethemoney45 said:


> Just curious...I've read lots of articles about paying off your mortgage first but then I read about how important it is to start investing early (like your 20s).


First of all - I'm not a flames fan. However, I will still help you. 

The thing is... It is only a good idea to pay off the mortgage before investing if you have trouble saving money to invest or, more importantly, if the rate on the mortgage is higher than what you can achieve in the market after tax.

Right now, mortgage rates are extremely low. Somewhere about 3% is the average. If you were to invest your money into equities, chances are that you can make more than 3% investing even after you pay the tax. This is when investing is more important than paying down a mortgage.

I currently have a mortgage and make no extra payments. I do, however, put more money into investments each and every month. The lending rate on the mortgage is just so low that it doesn't make any sense to pay down the mortgage.

I am up over 25% YTD on my investments. If I put that money on my mortgage, I wouldn't even be up 3%.

In short - sometimes it makes sense to pay down the mortgage first and sometimes it doesn't. Most of the time, it does make sense to pay the mortgage first as the mortgage is a "guaranteed" rate of interest you have to pay. At this time in the economy, it is more wise to invest the money, get higher returns, then when interest rates start going back up, use the money that you earned on your investments to pay down the mortgage.


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## supperfly17 (Apr 18, 2012)

KaeJS said:


> First of all - I'm not a flames fan. However, I will still help you.
> 
> The thing is... It is only a good idea to pay off the mortgage before investing if you have trouble saving money to invest or, more importantly, if the rate on the mortgage is higher than what you can achieve in the market after tax.
> 
> ...


Totally agree with you, but we cannot predict the future. It is a better idea to diversify by both investing and paying off your mortgage no matter what the interest rate is. Overall it definitely is a better strategy. You have to take into account peoples investing skills, time they have, family, kids, etc... Probably for 99% of us, it is better to do both.


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## rikk (May 28, 2012)

In an alternate life, working, the new guy said he was paying off his mortgage as fast as he could. Offhandedly I said why bother, it won't be your house much longer anyway ... me and a few others had gone the divorce route and I was just ribbing him. Well you can guess what happened ... his stay at home wife wasn't staying home alone. It was very unfortunate, they have a daughter as well. So you young married guys ... just saying, you might reconsider working your butt off to pay down that mortgage ...


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## crazyjackcsa (Aug 8, 2010)

I had a plan, but low interest rates changed things. 

The plan was:
1. House paid off at 38
2.Start investing at 38
3. I'm 34, two kids

Now it's:
1. House paid off at 58
2. Start investing at 33
3. Still 34, still two kids.


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## betsu63 (Mar 4, 2011)

*Mortgage*

bought house when 22 and finished mortgage when 32
Started investing around 24
51-no kids


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## uptoolate (Oct 9, 2011)

rikk said:


> In an alternate life, working, the new guy said he was paying off his mortgage as fast as he could. Offhandedly I said why bother, it won't be your house much longer anyway ... me and a few others had gone the divorce route and I was just ribbing him. Well you can guess what happened ... his stay at home wife wasn't staying home alone. It was very unfortunate, they have a daughter as well. So you young married guys ... just saying, you might reconsider working your butt off to pay down that mortgage ...


I'm not sure but isn't the split 50:50 whether it's real estate, investment accounts or bubble gum cards if they were accumulated during the marriage. Unless you're suggesting that you spend the money on beer...


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## uptoolate (Oct 9, 2011)

Paid off mortgage in 2005 at age 44. 
Started investing seriously in 2001.
53 now. Retired for 1 year. Four children - 21, 19, 17, 16.


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## Plugging Along (Jan 3, 2011)

1. Took mortgage in 2004, paid off in 2011 age 36 ish 
2. Started investing at 21 right out of school. I don't know if it was serious, as I was just figuring things out, and more of gambling. Pretty much tried to max rrsps out within a couple of years of paying of loans. Was serious sometime in mid to late 20s
3. 40 with 2 kids

Most important...
GO FLAMES GO.


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## gibor365 (Apr 1, 2011)

uptoolate said:


> Paid off mortgage in 2005 at age 44.
> Four children - 21, 19, 17, 16.


Wow! 4 kids in 5 years! Should be tough....


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## heyjude (May 16, 2009)

I bought my first home at age 34 with a big deposit and paid off the mortgage in 18 months. It was the early 1990s and mortgage rates were about 10%, so I was damned if I was going to pay those rates for any longer than I absolutely had to.


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## Ihatetaxes (May 5, 2010)

Paid off $300k mortgage in under 5 years while wife took two mat leaves and I quit my job to start a business in the middle of that period. I was 41 when the final payment was made. House now worth around $900k.
Always maxed RRSPs. Have never missed a year of max payment and neither has my wife. Got serious about investing in our late 30's. It's become an obsession the last 4-5 years. Wife just retired and we are very FI.


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## pwm (Jan 19, 2012)

rikk said:


> In an alternate life, working, the new guy said he was paying off his mortgage as fast as he could. Offhandedly I said why bother, it won't be your house much longer anyway ... me and a few others had gone the divorce route and I was just ribbing him. Well you can guess what happened ... his stay at home wife wasn't staying home alone. It was very unfortunate, they have a daughter as well. So you young married guys ... just saying, you might reconsider working your butt off to pay down that mortgage ...


Funny story (well not really funny more tragedy/comedy really): My brother in law had his mortgage paid off before he got married. They got a divorce and his wife got half so he took out another mortgage to get rid of her. Then he repeated the process a second time with wife #2! So in effect he paid for the house twice. It just reinforces the fact that staying married to one person is a huge financial benefit.


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## rikk (May 28, 2012)

uptoolate said:


> I'm not sure but isn't the split 50:50 whether it's real estate, investment accounts or bubble gum cards if they were accumulated during the marriage. Unless you're suggesting that you spend the money on beer...


OT: Yes it's 50/50, but in his case the house was awarded to the non-working ex so that she and the daughter could life the life they were accustomed to. There were child support payments as well. On the serious and non-financial side, I don't know how some of these guys can handle that sort of situation. My own divorce was shared (50/50) custody/child support, and that was stressful enough to achieve.


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## rikk (May 28, 2012)

pwm said:


> Funny story (well not really funny more tragedy/comedy really): My brother in law had his mortgage paid off before he got married. They got a divorce and his wife got half so he took out another mortgage to get rid of her. Then he repeated the process a second time with wife #2! So in effect he paid for the house twice. It just reinforces the fact that staying married to one person is a huge financial benefit.


OT: On the other hand, sure the ex got the first house plus a few odds and ends but my second marriage going on 22 years now is much better than the first. I supported my current wife through university, a few degrees, she's working and has been for some time, plans on putting in a few more years ... bringing in the big bucks ... while I'm retired three year now ... life is good, seriously 

On topic, bought and paid for my current house in 1993, have yet to start investing seriously, 68.


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## Soon Forget (Mar 25, 2014)

crazyjackcsa said:


> I had a plan, but low interest rates changed things.
> 
> The plan was:
> 1. House paid off at 38
> ...


This is very interesting. The theme among the first few responses was to pay off the mortgage before any serious investing - I assume this was because a) these mortgages were back when rates were much higher, and b) TFSAs didn't exist yet? If these same people had a mortgage today would they still choose to kill it before investing?

On Bogleheads many people seem to recommend maxing all available tax-deferred and tax-advantaged space before making extra mortgage payments, since the ongoing growth from these sources far outpaces the mortgage interest paid for years and decades after the mortgage is gone.

We're in a position (early 30's) where if we wanted to be more aggressive with the mortgage it would mean neglecting one of RRSP, TFSA, or RESP until the mortgage is gone. Or, continue paying minimum mortgage payments at <3% rate for 20 more years and try to keep the accounts maxed. Of course if mortgage rates moved up we'd re-evaluate.

crazyjackcsa, any regrets in your decision to keep the mortgage? Most people who paid off their mortgage say it's the best thing they ever did, you're kind of in the opposite position.


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## OnlyMyOpinion (Sep 1, 2013)

Bought in 1980 when our five year mortgage rate was 14.5%. Needless to say we were motivated to pay it off. Did so in 5 yrs even though we were just starting out and had less than $20k annual take home pay. House was $90k. Been mortgage-free since 1985 and still live in the same 3 bedroom 4-level split on a cul-de-sac. Recently spent $50k fully renovating in and out so we are in low maintenance mode for retirement. 
Trust me folks, the time goes quicker than you expect - make the most of it.


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## cman2 (Jan 14, 2011)

Bought the first house when I was 23, paid off at 30.
Bought the second house at 31, on track to be paid off at 40.
Started investing at 25 or so but with small amounts. Still not maxing out TFSA or RRSP. Maybe once the mortgage is paid off and the government stops increasing TFSA limit, I can catch up on those.
Age 37, married, no kids.


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## uptoolate (Oct 9, 2011)

Soon Forget said:


> On Bogleheads many people seem to recommend maxing all available tax-deferred and tax-advantaged space before making extra mortgage payments, since the ongoing growth from these sources far outpaces the mortgage interest paid for years and decades after the mortgage is gone.


And also bear in mind that mortgage interest is tax-deductible in the US so it may swing the equation in favour of investing rather than aggressively paying down the mortgage.


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## uptoolate (Oct 9, 2011)

gibor said:


> Wow! 4 kids in 5 years! Should be tough....


I think it has always been a little (read: alot) bit tougher on DW. But very rewarding nonetheless.


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## Ponderling (Mar 1, 2013)

owned first house as a partnership with 2 pals in early 90's - sold with no major capital gain after living in it for 4 years.

Bought second home with my wife in 2003 when I was 37, she was 38, and 2 kids - 3 and newborn. We had 125k of equity in it and a 180K mortgage on it.
In 2006 I sold off other assets in our portfolio and had my RRSP take over the mortgage via a self directed mortgage via a trust co. 
We paid the self directed mortgage off in 2009 when the size of the investment return from the shrinking amount outstanding on it started to be overtake by the associated trustee fees.

Now we are working on just how many more years to keep investing while still feeling the need to work full time.

The kids RESP is presently set to pay for each of them to get 4 years of school at 25K per year.
So I am not worrying about retiring before kids are though with any post secondary education they may want to enroll in.


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## pwm (Jan 19, 2012)

Soon Forget said:


> This is very interesting. The theme among the first few responses was to pay off the mortgage before any serious investing - I assume this was because a) these mortgages were back when rates were much higher, and b) TFSAs didn't exist yet? If these same people had a mortgage today would they still choose to kill it before investing?
> .


The "pay off the mortgage or invest" debate has been going on forever and will continue to do so I presume. One could do spreadsheets and complex calculations till the cows come home to show that doing both is the best option, but those calculations are all based on future interest rates and investment returns that are pure conjecture. 

I personally just believed instinctively that it was better to be free of debt before saving to invest. Also the feeling of being debt free had a huge intangible value associated with it that was hard to quantify.


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## gibor365 (Apr 1, 2011)

> I personally just believed instinctively that it was better to be free of debt before saving to invest. Also the feeling of being debt free had a huge intangible value associated with it that was hard to quantify.


Exactly my opinion!


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## Soon Forget (Mar 25, 2014)

pwm said:


> The "pay off the mortgage or invest" debate has been going on forever and will continue to do so I presume. One could do spreadsheets and complex calculations till the cows come home to show that doing both is the best option, but those calculations are all based on future interest rates and investment returns that are pure conjecture.
> 
> I personally just believed instinctively that it was better to be free of debt before saving to invest. Also the feeling of being debt free had a huge intangible value associated with it that was hard to quantify.


Understood on both points, and fundamentally I'm of the same opinion.

I'm in 43% bracket with no work pension, so maxing my RRSP annually is non-negotiable. Easing up on TFSA or RESP could let the mortgage disappear in a much shorter time, but I still can't help thinking that a young family would be better prepared for the unexpected things in life if assets were liquid instead of tied up in the house. Maybe once TFSAs hit a certain level we'll switch gears and get rid of the debt.


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## showmethemoney45 (Feb 27, 2015)

Thanks for all the replies.

I think we will build up a little savings in TFSA in case of job layoff or emergency. Maybe 30K? If interest rates go up we can use this to help pay down mortgage.
I plan on putting 20-25k into RRSP each year to cover the equity paydown on our rental properties (then we don't have a tax bill at the end of the year). All personal extra cash and rental income will be used to pay off mortgage...hoping less than 5 years 
I really like the thought of having no debt....warm and fuzzy feeling.


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## Eclectic12 (Oct 20, 2010)

Soon Forget said:


> ... The theme among the first few responses was to pay off the mortgage before any serious investing - I assume this was because a) these mortgages were back when rates were much higher, and b) TFSAs didn't exist yet? If these same people had a mortgage today would they still choose to kill it before investing?


YMMV ... being able to sleep at night is valuable to some people so they prefer to get rid of all debt. Others I have met were traumatized by their parents losing the family home when growing up so they have one focus. 




Soon Forget said:


> ... On Bogleheads many people seem to recommend maxing all available tax-deferred and tax-advantaged space before making extra mortgage payments, since the ongoing growth from these sources far outpaces the mortgage interest paid for years and decades after the mortgage is gone.


Paying down the mortgage is a safe, predictable return ... unless one has experience to know oneself and one's investing methods, one does not really know. I've worked with people who fired the advisor as they "knew stocks better" who then lost a fortune. Doing this in a registered account is going to have a double whammy (i.e. no CL can be claimed and contribution room is gone).

So again ... YMMV, where one's confidence may bear no relationship to results.


Cheers


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## 0xCC (Jan 5, 2012)

Personally I was relieved when we met the financial milestone of having investment assets that were greater than our outstanding mortgage. Hitting that milestone meant that if we ever got into the weird economic state of the early 80's with double digit inflation and mortgage interest rates in the high teens - low twenties we had options and would never be forced to take a high mortgage rate.

My parents didn't suffer through those high interest rates in the early 80's, they bought their house in '75 or '76 and took over the mortgage on the house with around an 8% interest rate and I think around a 20 year term so they were not impacted at all by high mortgage rates. So I didn't have any first hand experience of the impact of those high interest rates. I just thought it was good to have options if an economic situation like that ever came up again.


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## Retired Peasant (Apr 22, 2013)

First house - paid off the mortgage in three years. 
Since part of the mortgage was held in my RRSP, you could say that was start of investing as well.
mid-50's; no kids.


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## houska (Feb 6, 2010)

A bit of a different trajectory here, posting since it reverses the "pay off mortgage then get serious about investing" pattern of a lot of the replies.

Started saving and investing at age 18, while doing my undergrad degree (well paying summer jobs and scholarships -- it was rather easier than it is now)
Traveled for grad school and then work for many years, so didn't buy a house until got married at age 34, cashing in all non-RRSP investments to cover 80% of home value (i.e. mortgage = 20%).
Was uncomfortable suddenly having so much of our net worth concentrated in one asset, so took out another 20% as (tax-deductible) investment mortgage/HELOC (a lump sum Smith Manoeuvre if you will)
Paid off the non-investment part of the mortgage in 2-3 years.
Now mid 40s, findependent, though spouse still works and I've started a small business. We still have the investment part of the mortgage, though will likely pay it off (i.e. reduce leverage to 0) at next renewal, esp. if rates increase.


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## piano mom (Jan 18, 2012)

Paid off first house in 2001 at age 31
Paid off current larger house in 2006 at age 36
Always maxed out RRSP, RESP and TFSA but started borrowing to invest since 2006
45 with 2 kids


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## kcowan (Jul 1, 2010)

We used the leverage on home equity for 30 years and the house values (5 of them) increased by a factor of 25.5 but those were different times.

Mortgage free since downsizing. (18 years)


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## 1980z28 (Mar 4, 2010)

First house purchased for 69k in early 80`s monthly payment was 328,interest rate was very high

Paid out mortgage in 8 years,so mortgage free for the last 27 years,have own 4 other homes from that time,paid cash

Now own 2 homes,second home will soon be finished(building for retirement),paid

Leverage a lot to invest,would not have what I got without leveraging ,,,,still leverage today


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## SW20 MR2 (Dec 18, 2010)

1. Bought first house in 2007 with $300k mortgage. It would've been paid off this year, but we sold it and bought our "long-term" house last year with a $500k mortgage. Same accelerated monthly payment, but the expected amortization now is another 17 years. It will be faster as I make a few lump sum payments along the way. My guess is that it'll be done in 12-13 years.

2. I'm not really a serious investor in terms of activity. I've been maxing out RRSPs since my late 20s and started RESPs for the kids right away when they were born. Aside from that, we have a small non-registered portfolio. There is lots of TFSA room for both of us, and that's the next thing that I'm getting to. Overall though, I'm of the mindset to payoff the mortgage moreso than investing. It's the risk-aversion part of me that dominates.

3. I'm 37, married with 2 kids.


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## Xander (Apr 3, 2009)

Moved in to first home in Jan 2004. Paid off spring of 2010
Was "forced" by my dad when I was 18 to put money in rrsps. Been a "willing and serious" investor since I was 25.
I am 40 years old, married with 2 children.


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## Freedom45 (Jan 29, 2011)

1. We're likely 13-16 years from paying ours off.
2. Started small when I was 18 (weekly RRSP contributions, etc). Been more serious since I was about 25.
3. I'm 34, wife is 39, no kids.


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## OhGreatGuru (May 24, 2009)

showmethemoney45 said:


> ...
> 1. When did you get your mortgage paid off?
> 2. When did you start investing seriously?
> 3. How old are you and how many kids do you have?


1. 1997
2. About 2001 (After the last child finished university) But even then I had only a small amount of RRSP room, as I belong(ed) to a pension plan.
3. None of your business.


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## janus10 (Nov 7, 2013)

Interesting how many people have no children. And how few people mentioned going through a divorce. Certainly, that would be information you may have decided not to volunteer so the numbers could be higher.

I invested first and only bought a house about two years after marriage in my late twenties. Five years later we separated and ended up selling the house for less than we paid for it.

Fast forward three years and I met my current spouse who, amazingly, was a single mom to two kids and was only a few months from taking possession of a nice little town home. She scrimped and saved by working two jobs and going to night school to improve her skills before she could land a single, decent paying job. I'll always admire her for that.

So, with my influence, and combined income, she started to think about saving for the future which was counter to her first husbands way of life. It took her time to adjust to not manufacturing needs out of wants, and giving into wants without thinking of the long term costs.

We upgraded the home to accommodate the three kids a couple of years after I moved in and we paid off the mortgage I think in about seven years. We marked the occasion by taking a bottle of ice wine on a Caribbean Cruise ( there was no mortgage burning ceremony - fire is NOT a good passenger on a cruise).

We have been fortunate that we can pay down the mortgage aggressively while still saving for retirement. I'd imagine that If I had to make a choice because of insufficient income, I would adjust our discretionary income towards investing or extra mortgage payments based on mortgage interest rate, RRSP matching opportunities at work, and even the value of the stock market (e.g if at multi year lows, start buying the bargains).


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## cwrea (Jul 2, 2009)

1. My wife and I were in our early twenties in 1997 when we bought our home with just 5% down. We had it paid off by 2011. We started with accelerated weekly payments rounded to the next $50. We also made a few dents, one deep, with lump sum payments along the way.

2. We started investing seriously around 1998. Having had to liquidate the small amount of mutual funds we had in order to make the home downpayment made us realize we weren't saving enough. I had also read The Wealthy Barber and it really resonated. We couldn't save much at first, but resolved to direct a good chunk of future raises into RRSPs.

3. We are in our early 40s now and have two kids, but we started late on the kids. We were dual income earners with no kids for the first ~9 years.


p.s. Go Habs Go.


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## protomok (Jul 9, 2012)

pwm said:


> It just reinforces the fact that staying married to one person is a huge financial benefit.


So true! I think finding a compatible spouse is the most important investment one can make. Few investments can result in 50% loss of net worth plus all the non monetary issues.

1 - 2011
2 - Not yet paid off, but it will be determined by interest rates. If interest rates stay low I'm OK with the full 25 year term...so 2036. If interest rates go up, will move funds from TFSAs to mortgage. Right now People's Trust TFSA rate is higher than mortgage rate so we're not really in a rush.
3 - Late 20s


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## birdman (Feb 12, 2013)

Bought 1st house in 1971 at age 24 on Westside of Vancouver for 18,500. with 5000.dp and a loan from the bank I worked for for 5,000. and assumed a 8,000. mtge. Wife worked and paid off loan in 2 yrs.
Sold house & upgraded to a 24,000. house in the Cambie area and it was paid off before the age of 30.
Wife was a stay at home mom and worked raising our 3 boys
Moved to the Okanagan in 1983 and retired in 2001 at age 55
Mostly saved in GIC's due to higher interest rates in those days but started investing probably around 1995.
Sold the house we purchased in Vancouver in Cambie (which we paid 23,500. for in 1974) for 146,000. in 1982. High inflation in those days and my salary increased from 5500.00 PA in 1971 to 52,000. PA in 1983.


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