We borrowed a $50,000 interest free loan from our parents to use as a down payment for our house. They don't need to begin monthly payments for the next few years, possibly until we sell the house. We plan to sell in the next 3-5 years but will need money for our next house down payment. Our dilemma is whether to put money towards our mortgage to get it paid down, so when we sell we will have more profit after paying off our loan to our parents or should we invest that money in a GIC/mutual fund or savings account and use that towards our next down payment? We love your show and live close by in beautiful Port Hope!

Believe it or not, this is actually an "investment" question, not a "debt repayment" question. What you really want to know is this: will your home appreciate faster than the return you can earn on a GIC, mutual fund or savings account? It's a good question.

Since the return on savings accounts haven't managed to go past about 4% in the last little while, and GICs aren't giving much more, it might not be a big jump to think your home appreciation would beat that. But mutual funds… that's a big category, and depending on what you invest in, you could see a higher return than on your home. However, since you have a short to medium term investment horizon (3-5 years), you'd want to stay with a somewhat conservative mutual fund, maybe a balanced fund.

So now you have to decide three things:

1. Will you use the tried and true savings account/GIC option and settle for less return?
2. Will you branch out into a mutual fund, learn how they work, and find one that'll meet your needs?
3. How much will your house appreciate over the same period, so you can compare it with the return you might get on your investments, which, by the way, is taxable (while your home appreciation on a principal residence is not).

That's the best I can do for you. You have to do some homework and make the decision that works for you. Good luck.