25d • Financial Planning
Mortgage vs ETF Investing — Where should extra Income Go?
Looking for some perspectives from the community.
If someone has a mortgage with an variable interest rate around 3–4% and also has extra monthly income available, what is generally the better financial decision:
- Put the extra money toward paying down the mortgage faster, or
- Invest the extra money into ETFs for long-term growth?
On one hand, paying down the mortgage offers a guaranteed 3–4% return (risk-free). On the other hand, investing in diversified ETFs (like XEQT, VFV, etc.) could potentially generate higher long-term returns.
From a purely financial perspective, how would you approach this decision?
Would you prioritize:
- Guaranteed 3–4% return (mortgage payoff), or
- Potential 8%+ long-term market returns (ETF investing)?
Would love to hear how others think about this and what strategy you personally follow.
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Mortgage vs ETF Investing — Where should extra Income Go?
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