It's a dream to be able to pay off your mortgage early, but is there a downside?  While it sounds like a great idea, there are some factors to consider before doing so.  This article will explore some of the reasons you may want to hold off on that final payoff amount.

Other Debts 

If you have various other debts (credit cards, auto loans, etc.) it's a good idea to pay those off before the mortgage.  Why?  Well, credit cards usually have astronomical interest rates so that outstanding balance will only grow if you choose to put all your money towards your mortgage.

That extra interest on your credit card or auto loan isn't tax deductible, which leads to the next point.

Check for Penalties 

Some mortgages come with a prepayment penalty.  If you're thinking about paying yours off early, then check the fine print to see if it applies, and also run the numbers to see if early payoff makes sense.

Fund Your Retirement Plan 

Before you go paying the mortgage...

It is the perennial question for every first-time homeowner. How much house can I afford? As with so many life-changing decisions, there is no one right answer to this common query, and the size of the home you buy, and the mortgage you take out, will depend on several critical factors.

If you want to know how much home you can afford, you need to ask yourself the right questions. Even more importantly, you need to provide yourself with honest answers to those queries. Here are some things you should be asking as you get ready for the transition from renter to first-time home buyer. 

•What is my current income? Is that income secure, or is my job in jeopardy? Your ability to pay the mortgage will depend on visibility of income, making the answer to this question extremely critical. 

•How much disposable income do I currently have? How much of that disposable income can I devote to the costs of home ownership? Owning a home is more than paying the mortgage, and you will...

For many Canadians looking to purchase a home, bad credit scores stand in the way of getting a mortgage. Most lenders prefer your score to be 650 or higher. If they do allow for lower credit scores, it is typically because the interest ratings on those loans are considerably higher.

If you want to get a good deal on a mortgage with low interest rates, the best thing you can do is to improve your credit score. Here are three ways you can do just that.

1. Check Your Report

The very first thing you need to do is check your credit report. You are allowed one free credit report per year, but some sites will allow you to purchase a full report at any time for a small fee.

Scan the report to see if there are any errors. You'd be surprised to find out most people do have errors on their credit report. It might be in the form of something you finished paying but was never removed, or something that isn't yours to begin with.

Once these errors are removed from your report, your credit rating might...

Building an emergency fund is something most people know they should do but few actually get around to doing. A recent study found that nearly two-thirds of Americans did not have an emergency fund, and more than half would have trouble coming up with $1,000 on short notice. That lack of savings puts them at risk and makes achieving long-term financial goals much more difficult.

Building an emergency fund is a critical first step on the road to financial security. Many people think that they do not make enough money to build an emergency fund, but even low-income workers can set money aside if they take the right steps.

Take Note of Daily Expenses

You may think you have no extra money to build an emergency fund, but those extra dollars could be hiding in plain sight. Take a few minutes to review your normal daily expenses, from that morning cup of coffee and lunch with coworkers to daily parking charges and the take-out pizza you grab on the way home.

Look for ways to economize and swap...