Our mortgage, a life companion! What would we do without it?
It allows us to acquire a home, to obtain goods that ensure our quality of life, to invest in different sectors of economic activity, to do business… and what else?
After having benefited from it for a few years, some, having become rich, are thinking of parting with it.
Others dare not imagine such a separation.
Of course, everyone steers their boat as they see fit.
But let’s share some thoughts on the subject of whether to pay off your mortgage when you can afford it.
Debt tolerance
Everyone reacts differently to debt. Some see no problem with it and resort to it to get everything they want immediately. Others tolerate it very badly and buy goods or, for example, carry out renovations only when they have accumulated the cash to pay cash. No question of living on credit, as my stepfather used to say.
Depending on whether an individual is “I want it right now” or “we’ll see when”, they will not react the same way to debt.
The personal situation
Age is a determining factor in an individual’s relationship with their mortgage.
The prospect of paying off a loan over 25 years for a young couple to break free from this financial constraint may be attractive for a debt-free future, while for an older couple it is much less so, if at all. . They will rather enjoy their equity immediately and let their mortgage run until their death.
Offspring
Without playing the prophet of doom, we all know that one day or another, the grim reaper will do its work.
Those who have descendants will probably want to leave them a substantial inheritance. What’s better than a fully paid-for property? On the other hand, what would be the interest for a childless couple to repay their mortgage? They will no doubt choose to afford a better quality of life.
The mortgage, a development tool
Refinancing your mortgage to start a business will interest those with an entrepreneurial spirit. Or, buy a rental property. Similarly, those with an investor profile may want to build a stock portfolio.
The mortgage therefore also opens up new horizons.
If you choose to pay off the mortgage
Before this option, it should be known that the lender, when he granted his loan, registered a lien on the property which remains in force even during a complete repayment.
A mortgage receipt will erase this privilege. A notary or a lawyer can perform this task for a fee. Thus, the borrower will be completely released from his obligations. However, if he wants to keep a mortgage margin by giving his house as security, he should not ask for this receipt. On the contrary, he must keep it.
In conclusion
The relationship to indebtedness depends on each person. Depending on lifestyle, age, goals, projects to be carried out… so many factors come into play simultaneously.
The mortgage is a financial tool that allows us to complete our projects. Before giving up, think twice rather than once.
