January 30, 2014
What's Better: Contribute to Your RRSP or Pay Down Your Mortgage?
A recent article in the Globe & Mail asked the question: Should you contribute to your RRSP or pay down your mortgage? The answer depends on a number of things including what tax bracket you're in among other considerations. In some cases you might benefit from contributing to an RRSP. Others may benefit from paying down their mortgage, especially if you see yourself throwing a mortgage paid off party one day in the future!
Another idea, and one the article doesn't mention, is contributing to your RRSP and taking the tax refund and applying it towards your mortgage balance. That's where I come in; as a mortgage advisor I can look for a mortgage with excellent & flexible prepayment options or review them with you if your mortgage is already up and running.
Again, every person's situation is different so working together with a Mortgage Advisor as well as a Financial Planner to find out what's best for you is a great idea.