Apparently 2012 is going to be one of the biggest years ever for mortgage renewals in Vancouver. If that's you then I'm sure you've been counting down the days as mortgage rates are far lower today than they were 4 or 5 years ago when these mortgages were last renewed or taken out. When you go into your bank, your mortgage representative should give you several options.

Option 1 is simply to pay your monthly or better yet bi-weekly mortgage payment based on your new lower rate. Now I realize the extra cash each month is going to be nice to have. Maybe take a vacation? maybe take in a Canucks game? Add more to your RRSP?

How about option 2 - Keep your payment the same, you were used to paying that anyway and have that extra money go straight to paying off your principal. It will shave years off your amortization. It's great to have these record low rates for at least another 5 more years but remember they only have one way to go from here. Why not kill off as much debt as you can while the getting is good? I can guarantee you will never have any regrets chipping more principal off your mortgage, especially when we start to see the higher mortgage rates in the future. Paying $500 for a pair of Canucks tickets might be another story.

If you want to voice your opinion or get in touch with Owen, please email owenbigland@gmail.com and visit http://www.owenbigland.com for all his Inside Edge Real Estate video blogs.