22 – Need some financial advice in terms of real estate investing (CA)

Hi guys,

(TL;DR: Want to pay down 10% per year on a mortgage which has an interest rate of 2.69%, is this a good idea?)

I currently live in Canada, I have owned my rental property for two, coming onto three years, and am very interested in continuing to invest in Real Estate.

I currently owe $165k on my mortgage at 2.69% 5 years closed (closed until 2020) every year I am allowed to put 10% of the current mortgage down, and have it go straight to the principle.

I am currently renting the home for $1400, and am in a position to put down 16.5k. I've been told this is not a smart idea as I could invest the money elsewhere, as throwing the money in now only guarantees me a 2.69% return on my investment.

I do plan on continuing to invest in real estate so the sooner I pay this house off (hopefully by 2020) the sooner I can get another. I also see a home as a personal bank account, I can always take a HELOC if I ever run into a sticky situation which comes with a much less interest rate in comparison to a line of credit/ credit cords.

Is there a bigger picture I'm missing?

More real estate tips at Program Realty Wix site


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