so I have two mortgages on two separate rental properties.
A. 100k remaining, 1 year left on term, 1.85% variable, 428 monthly.
B. 300k remaining, 4 year left on term, 2.54% fixed, 313. weekly.
I have 100k to pay down, which do I do and why?
eliminating A will allow me to have an extra inflow of 428 each month.
but Ill be paying more in interest over the course of the term of paying for B, so wouldnt it make sense to knock off some there? however I will have that extra 428 expense to deal with from not paying off A
I am in Canada.
Edit: It seems like the Bank of Canada plans several rate hikes this year, which will increase the variable rate.