In other words, if my regular payment was 00, my extra payment in a given month could not exceed 00.
With M1, I can deposit any amount that I want into the account to reduce the balance, which is ideal because in a typical month my excess cash is well over what a traditional mortgage payment would be.
If you want to gamble, spend two bucks on the lottery, or drive on the 401. So it’s okay to have exposure to stock markets, but get it through baskets of equities. They’re like mutual funds, but since there’s no fund manager who likes Porsches, there’s no big management fee.
And there’s no way the little guy can compete with professional traders or high-frequency computer transactions.
Junior, speculative issues – especially in the energy sector – are investor death traps.
As I’ve been looking into using the Smith Manoeuvre strategy, I’ve come across a few mortgage solutions that will fit nicely.
Among them include the RBC Homeline mortgage, the First Line Matrix mortgage, and the Manulife ONE (M1) mortgage.
The mortgages are similar where they have a traditional mortgage portion with a home equity line of credit (HELOC) portion attached to it which increases the credit limit as the mortgage gets paid down.
The M1 mortgage, on the other hand, works a bit differently.
I have written another article regarding the Manulife ONE mortgage which includes an analysis of the overall cost in the long term.
Check out our Manulife ONE calculations, it’s a real eye opener. If you would like to read more articles like this, you can sign up for my free newsletter service below (we will not spam you).
The Manulife One website is also full of info, you can check it out here. Frugal Trader is the founder and editor of Million Dollar Journey (est. Through various financial strategies outlined on this site, he grew his net worth from 0,000 in 2006 to ,000,000 by 2014. I’m an M1 customer and feel the need to point something out, which may or may not be true with RBC’s Homeline mortgage but is based on my experience with a traditional RBC mortgage.
With my old, traditional RBC mortgage, when I wanted to make extra mortgage payments on a monthly basis, the maximum extra payment I was allowed to make couldn’t exceed my regular payment.