I would lock that down to a 5-year fixed immediately. Mark Carney has made it widely known that he's itching to raise interest rates, and was already hoping to start this summer. He's begrudgingly waiting, but it's inevitable, and just around the corner. You can lock that down at 3.69% fixed today, and I would strongly recomend you do so.
Thanks for the advice, we've been weighing in on this idea for awhile seeing as rates couldn't possibly go any lower, but its tempting to hold on to the variable till years end.
I'm confused - how would $6k last you 6 months? Your minimum monthly mortgage payment alone is ($388 * 26 / 12) = $841. That only leaves you $159/month for everything else. What are your total monthly expenses?
Sorry should have specified that it's more of an emergency fund that covers my own butt for 6 months, as we split expenses down the middle it hovers around 1k each monthly. Jointly you could call this a 3 month EM, but seeing as her scholarship is guaranteed for the next 3 years I don't worry about her end.
This is none of my business, but if you've been together for 4 years, I'd suggest it might be time to share your financial information with each other, just to make sure there are no surprises for anyone. If you've bought a house together, you should know how much other debt/savings she has.
I don't know specifics I just have a general idea of what goes in and out. She has no debt, pays off her credit card in full each month. So I guess I just don't seem to be too concerned here to pay much attention.
I'm assuming the DC plan through works is also a qualified RRSP? If it's not, then of course it doesn't count towards your 18% annual contribution limit. I would also advise you to look into the expenses associated with whatever mutual funds your DC money is invested in, because company-sponsored plans typically have outrageously high expenses. They're notoriously terrible, particularly in Canada. As for the remaining 3% you're investing outside of your employer DC plan, where do you have that stashed? What is it invested in?
Yes the DC plan contributions count toward my overall 18% and the fees are actually quite competitive. I'm in two plans (for both my RRSP and DC) that both end in 2040 and are quite neat because they have a guaranteed value at maturity if you stay in the plan until then (google: Sunlife milestone plans) and basically adjusts how its invested as I get closer to retirement. IE. more stocks and international for now and then it slowly progresses to bonds / money funds. The fee is only 0.95% for the fund, which has been about ~$160 to date (1 year). My return since joining in July of last year is 7.5.
Yes, I would. I would refinance it to a fixed rate, and pay extra on it.
Ok thanks, don't need to refinance though I can lock in anytime to the best fixed rate (as long as I keep my term > 5 years, including whats already been done). I will continue to pay it down either way.
Given that you just used your TFSA money for a house down payment (a relatively short-term savings goal), what is your next plan for your TFSA? What are you saving up for next? The reason I ask is because if it's for another relatively short-term goal (like the house down payment), I would advise you to be very careful about investing it in volatile securities like stocks or mutual funds, and would instead stick to lower-risk things.
To be honest I have no idea... I've always wanted either a BWM 335i or a Subaru WRX STI. But those are more of a dream car as I don't think I could bring myself to spend so much on a point A to point B car. We currently have a 06 honda civic fully paid for and that seems to do what it needs just fine.
If I wasn't going to throw it at the mortgage, and I had no other debt, and I was already maxxing out my RRSP and TFSA room, I'd spend it. Have fun with it. Save it up and take a trip.
Thanks for all the advice.