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Option 1 - Paying Off Your Mortgage Early

Repaying your mortgage early allows you to save on your repayment interest. Putting your money into an alternative investment means that you'd first have to pay tax on the returns you receive. For high marginal taxpayers, this means that the alternative investment would need to nearly double the mortgage interest rate to put you in a better position. This becomes very difficult unless the investment carries substantially more risk. This option offers a good return at very low risk.

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