Paying off mortgage like a boss!

As I’ve mentioned previously, we just went through a process of refinancing our home. Now, to a normal person this is a rather joyless occasion because it doesn’t really change anything. But to a financial nerd like me, this is just another excuse to crunch the numbers and play with scenarios.

Think about these scenarios as traveling through time. What will our lives be like when we’re completely debt-free?


Great news about paying off mortgage!


… is the fact that we’re finally making a dent in this mortgage of ours. Yes, I know mortgage in French means “thing you have till you die” or may be “herpes”, but after 5 years of making payments we’re seeing the difference and perhaps a glimpse of light at the end of the tunnel. Now we just have to make sure that the light isn’t an oncoming train.

When we first got our mortgage, it came with a bi-weekly payment of $495. Every year or so, we’d increase the payment by 10% till the payment increased to $658. The extra payments would go towards the principal and slightly speed up the process of paying off mortgage. Extra payments coupled with a healthy downpayment made a nice dent in the mortgage by the time we had to refinance 5 years later. The amount of money we still owe is $195,000 (price of our home - $285,000)

Another great news is seeing how much of our new payment will be going towards the principal. On original payment of $450, huge chunk of it was interest. By the time the payment grew to $658, it was a bit less than a half. New payments consist of roughly 30% interest and 70% principal repayment. And that means more and more of our money going towards principal and less towards banks’ profit margins and their nice furniture. Take that, banks!


Paying off mortgage

Paying off mortgage


Bad news!


Paying off mortgage is hard. We’re still not even half way towards repaying it. We’ve paid $285,000 for our home, and the mortgage is barely under $200,000 right now. It’s a bit depressing to think how much we still have to pay towards it. I want us to be debt free yesterday! I want us to keep the money we’re throwing at the mortgage in our bank account to enjoy it, not hand it over to some big corporate bank! Trust me, the quality of life for me and my wife comes first before that of banks and banks’ shareholders (sorry, dividend investing bloggers).

So, I’ve said to my wife: “- I hate our mortgage!”

And she said”:  “- Hey, so do I!”

And then I said: “- Hey, I’m glad we finally have something in common!”

Then she gave me THAT look, and I’ve decided to proceed with our options:


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Canadian Exempt Market Investments - Friend or Foe?


Note to reader: This started as a short blurb on the subject but I just kept adding and adding more information to the point of this becoming one of the longest posts I’ve published to date. I get excited like this sometimes 🙂 Overall, I think this provides everything one would need to start their research on Canadian exempt market investments. Here are the key things you’ll learn in this post:

- What are exempt market investments?

- Examples of typical exempt market investments

- How you can become an investor

- What are the risks associated with alternative investing

- What are the benefits 

- Some exempt market investments I’ve put my personal money towards.

Hopefully it will give you something to think about. Feel free to ask me questions by commenting! 


What are exempt market investments?


If you ask a person next to you about investing, they’ll mention public stock markets like NASDAQ or NYSE. They might mention mutual funds or index funds at the same time. More advanced investors will mention hedge funds or initial public offerings. If you happen to be talking to me, I might talk about stockpiling pretzels for the upcoming food crisis caused by zombie outbreak as a form of investing - but that’s what you get for talking to me.

If you’re somebody who is interested in investing your hard-earned money and live in Canada, sooner or later you’ll run into an interesting world of exempt market investments. Exempt market investments considered to be an alternative type of investing as opposed to traditional public stock markets.

Years and years ago, alternative investments were not accessible by everyday investors and average people. They were specifically reserved for institutional investors (corporations, pension funds, financial institutions, etc.) and individuals with high net worth and connections to the right people. But just like investing on the stock market became extremely accessible to everyday folks, exempt market investments are accessible now to “regular people” like you and me.

Exempt market investments are not a small niche market. In fact it’s huge and worth billions of dollars in Canada alone. More money is raised through private equity investments than through traditional stock exchanges. The question is - should you even consider touching these investments?

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