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  1. Wow – you guys get penalized for paying your mortgage off early? That doesn’t happen here. There are so many things to consider when contemplating a move, isn’t there? I agree with Pauline: check and see if the house could work with your long term goals, like possibly having kids, etc. A one-level would be good even in retirement years, and you could always hire out to help with the land care later. All in all you guys are in a good spot financially, so although a bigger mortgage might make things a little tight, it just might be the right decision for you guys. We moved to over 7.5 acres in October, and are loving it.

    1. Yes we will get penalized if we break the term of the mortgage so in this case we would be starting year 4 of a 5 year term. I’m not sure where we will go from here but we always keep our eyes and ears open. We would like to get out of the city a bit but that could just be a dream. Either that or save some money and just travel!

  2. I don’t think I’d really look at MLS listings at all – I’m happy just dealing with the house I have now! 🙂

    1. We have plenty of renos to do so we also like to look and see what people are buying and selling and what’s hot… we enjoy it although I think it just got the best of us. I don’t know where this life will take us but what I do know is that we will consider everything we do throughout the process if there is any change.

  3. We are mortgage free, and have been for 16 years. My Dearest is always looking MLS and for me it is scarry. That said we have never lost money on real estate. Dearest has bought land, rental properties and this farm. All which were at least triple the value in 15 years. But right now I personally find the market too high. Something has to give.

    1. So did you both have any desire to leave the home you had paid in full to buy a bigger home or one with a bigger plot of land? Why did you choose to stay for 16 years so far? How do you find being a landlord?

  4. I honestly don’t know what I’d do without a mortgage payment, but that’s a great problem to have. I’d probably start socking money into blue chip stocks until there was enough to buy some more rental properties. Even though a rental mortgage makes sense, it would be hard to tie myself back into a long term loan. Maybe if I knew I had enough to pay it off, that would be different?

    1. Well, it’s not a problem haha… you’re always a joker! But I really don’t know what we will do as we are always thinking about something. I know what you mean about the rental mortgage…. lots to think about that’s for sure.

  5. Oooh, that stinks that you have a pre-payment penalty on your mortgage. No fun! Mr. PoP still occasionally surfs the MLS listings, but mostly for investment properties to see if there are any nuggets of gold out there. Luckily (maybe?) there aren’t. So we’re still in paydown mode.

    1. Yes there is a payment penalty if we pay the mortgage in full but we are allowed $37k per year pre-payment with no penalty. We just have to wait and see the final numbers to decide on the best route. I’m still thinking pay it in full may turn out cheaper.

      1. Are you sure? Generally with a residential mortage, if you pay off the mortgage at the end of a renewal period, there is very little penalty.
        What we did when we paid ours off early, was changed it to an 6 month Open Mortgage term when it came up for renewal, which allowed us to pay it off with 3 months interest penalty. This wasn’t a posted renewal interest rate, but rather they told us about it when we went into the bank to enquire.

      2. Sorry, I just reread your answer again.
        I thought you were saying they were charging you a $37K penalty !
        We did get charged $30K penalty for a commercial mortgage,a few years ago.

  6. I would have no problem with looking at the MLS listings and/or going to an open house. Not everyone looking at a model home is looking to buy the house itself. Especially if it’s a new build people will go have a look for ideas as anything else. Hubby loves looking at listings for Manitoulin Island. His parents had a cottage there back in the day. His sisters inherited the cottage and sold it a few years later. Getting there or coming home is a whole day shot…. assuming the ferry is running. It was nice up there but I don’t have much in the way of patience when dealing with drunks…… Some of the places he looks at are a nice water front location but the houses themselves are more of a nightmare than a dream cottage. To call these places a handyman helper is almost insulting to the poor handyman….. In the middle of nowhere can be a description too…. and I’m being polite here……
    Mind you I have always enjoyed looking at house plans and playing with them, decorating in my mind…. I’ve had an interest in that kind of thing since high school. What drives me crazy is the fact that I really don’t care for what is “in style” right now…… I look at the designs and can’t find anything that I like!!!!!!! 🙁

    1. You are reading my mind as that is just what I was explaining to Edward in another comment. I look at houses outside our range and open houses. I’m going to write a post about it and I think it will help to see why we do what we do. I would prefer to move to a smaller city and have some land but there is so much to think about. We are still young and I hope to increase my salary as I gain more experience in my career. If only we had a crystal ball, right Christine? How was the day today? I hope it went well for him. Mr.CBB

      1. A crystal ball indeed!!! Part of the thing is that the more you look at other things, In this case houses, the better idea you get of what you like and what you don’t like. In that regard should you decide to move elsewhere you would have a better idea of what you want when you go see an agent and can avoid wasting time looking at houses that are not want you want. It clarifys things some what for you as you start to look. I could likely walk into an agents office and say … OK I want a house in this area…. I want this, this, and this, and I’m not interested in that or that. What do you have that fits the profile in this price range…..narrow the field there. Basically the more you look around , the more you can figure out what it is you want and what you don’t want…. Which can be just as important.
        Things went OK with hubby, they took him about the time we were told, he was in recovery within an hour, so what we expected. He couldn’t have anything to eat or drink after midnight last night so he was a hungry grouch after. I’ll call for a follow-up in 2 weeks in the morning…… It’s looking good and we are glad to have it over with…..Thank you for asking

        1. That’s essentially what we do, just look to see what is out there, trending and cost in case we decide to move or have to move for work. Glad to hear he is ok Christine and recovering now.

  7. That’s a loaded question about the house, because let’s say the area wasn’t selling well…you might lose money. But if the area was hot and you stood to make a killing off it, then possibly. In the meantime, I’d just enjoy something that was paid for and work on making some upgrades if necessary.

  8. When we were house searching, I simply entered my maximum number in and never had to look at listing that were out of my price range. The two million dollar mansion with lakefront property? Of course it’s beautiful, but I’ll never afford it, so why bother even letting it show up in my search listings?

    1. I can understand that and sometimes I like to look at them even though I may never own them. I like to see what they have inside, decor, landscaping, colours, finishes as opposed to wanting to purchase them. When searching in our price range I set the $amount to what we would be willing to pay yes.

  9. Depending on the amount of the amount of the mortgage penalty, you may want to wait until there is no penalty? Do you have other bills to pay off? Could you put more in your RRSP?
    When we paid off our mortgage we continued to put that money into an investment fund, until we decided what we wanted to do next.
    Eventually we used it for rental properties, along with the equity from our house.

    1. Hi Kathryn,
      No we don’t have any other bills to pay and the maturity date is April 2014 where we would have no penalty. When I called back a couple months ago it was around $2k but that was not putting down the 20% this year and then paying in full come April as the last year of the term begins. I’m expecting it will be even less than that. If tomorrow I put down the 20% prepayment of $33,xxxx that would leave us at around $118,xxx. In April 2013 we can put a further $37k down then break the mortgage. If we continued from April without putting the second pre-payment of $37k and continue to pay our weekly payments of $243.03 until April 2014 as per normal we would pay $5217.54 in interest.

  10. Mr. CBB, I think it is *great* you and Mrs. plan to pay off the mortgage early! I think that’s very exciting… and I love hearing success stories like this!!! 🙂 However, I’m wondering if you could take me through your thinking of paying it off in April 2013 (therefore incurring a penalty) instead of April 2014? It sounds like financially it could make the most sense if you got it as low as possible in April 2013 so that last year there was hardly anything on it (just enough to keep from paying it off completely)… and then you paid off the very last smidgen when the renewal came up – therefore not having to pay a penalty. I’m also guessing interest rates are lower now than they were when you originally got your mortgage – therefore likely making your penalty even higher (since I think the bank would then calculate it on that higher interest amount they lost)? Of course, I also think I’ve still got a lot to learn myself! So maybe my thinking is completely backward?! I’d love to hear your thinking behind this decision. Is it a financial one? Or is it even more about fully owning your home outright as fast as possible (which to me is more of a personal comfort level and so even if it cost a little more, it would be worth it)? Just curious! Thanks for sharing so many experiences and thoughts on your blog – I appreciate it.

    1. Hi Krista,
      I answered this in a comment I believe one or two down if you want to give it a read. After we pay the $33k this month that leaves us with around 118k and around $90 a week interest with a grand total of $5217.54 in interest until maturity in April 2014. BUT>> Yes we could put another 20% down come April 2013 so around 37k bringing it down to $81k and less weekly interest. Then once we do that we will ask what the penalty would be to break the remainder of the term. What we don’t know at this point in order to make a final decision is what they will charge us to break the mortgage at $118k as it changes daily they said. We will know more information as soon as April rolls around so we can make a final decision and do the math.

  11. I love how comprehensive your updates are–I dream of the day when I hit the $500K mark! 🙂

    When I was searching for my condo, the MLS was a blessing and a curse for exactly what you mentioned–those darn reminders of all the “extras!”

    1. I hear ya, but I really do like taking a look into others homes to see what they have done. It can get the best of me sometimes though. P.S All posts are moderated, I received both and deleted the last one. Cheers

  12. Interesting question… I would definitely invest some of it in Stocks / Funds (because it has fast become a big hobby of mine to research and make picks – doing really really well so far this year) – and I would inflate our lifestyle in the form of holidays.. more of them (Ski/Snowboard) etc. but not in the form of day to day living. i.e. I would definitely not start shopping at a more expensive supermarket. What I guess I am trying to say is that I would spend more on the things that are important to us in addition to investing and saving! 🙂

    1. I’d like to see us invest more, go on holidays as I haven’t done that since I moved here and would love to go home and travel with the wife as much as possible. I don’t think we will start spending more on food, clothes etc.. that would stay the same.

  13. I don’t think that looking through the MLS is anywhere near as deadly as actually going to look at a home that you saw on the MLS. 😀

  14. Mr CBB, I disagree. There will be lots to report especially if you are investing. How about why you chose what you chose, how is it doing, what are you looking o do next and what if anything did you learn from the financial books you tackle. Digging your way out of debt through budgeting is only the first step where you can lead your fans. Now, when they follow your example and become debt free…what do they do next? Wealth doesn’t just happen – it has to be managed & you are just the guy to lead the charge! 😀

    1. I agree there will be lots to report IF I start investing on my own but if I’m not there is nothing really to report. At this point it’s baby steps and I need a starting point, somewhere to learn and play and understand what it’s all about. Any suggestions?

  15. That is very tempting Mr. CBB! I can understand that you look at the listings and see something that you fall in love with. In the end you have to do what’s right for you and your situation and I know you’ll do that. That said, the thought of having a house paid for with no worries of a mortgage…I think I’d have to stay there and not “move up” to take on a new mortgage. I might buy to have a rental, but not to move up. Who knows, maybe we can be neighbors in Guatemala on some of Pauline’s land. 😉

    1. Haha….wouldn’t that be funny now… and I’m sure Pauline’s shaking her head and drawing up the paper work as I type this although her post today was inspiring and makes one see through someone else’s eyes that paradise isn’t always what it seems. We have lots to think about I know.. thanks for popping in mate!

    2. OK, both your contracts are drawn haha! If there is enough of us we may even get broadband internet 🙂 Thank you for the spotlight Mr CBB, that is so kind of you.

      If you love the house and think it can be a good forever home, you should go for it! With a forever home I would look at flexibility to repurpose the space. Does it have space to have a family, can you rent that space if the kids move out or can they be independent as teenagers, can you turn that basement into a rental unit, etc. and why do you need 6 parking space? Remember delayed gratification, a beer after mowing the lawn is much better than while mowing….

      1. haha.. that’s funny mate… might even get broadband. We love the house yes, but we would like land. We don’t care if we don’t have a huge house as it’s only the 2 of us but we would like some land. Parking spaces are a premium here, we don’t need it’s just the house we were looking at had a long drive with lots of parking. Ya, I drink my beer after mowing, I’m not that talented 😉

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