Years and years of paying the mortgage are coming to an end and finally you make that last payment. You may just do the happy dance. But then what happens? What’s the best way to use those surplus funds? Here are three thought-starters to consider.
If you have unused contribution room, putting the surplus in your Registered Retirement Savings Plan (RRSP) will give you a tax deduction and generate tax-deferred growth from now until you retire. If you put it in a Tax-Free Savings Account (TFSA), there’s no tax deduction but all earnings are tax-free.
If those options aren’t available, you can still invest in a non-registered account. This boost might enable you to retire earlier than planned or retire more comfortably.
You may wish to distribute the surplus funds to help meet multiple goals, such as paying off a line of credit, saving for retirement, and helping a child with a down payment on a home.
Maybe you’ve always wanted to own a vacation property. Or turn the unfinished attic into a yoga room. Or perhaps you or your spouse wants to launch a business. Whatever you hope to achieve, the new financial support may help you make it a reality.
Once your mortgage is paid off, we can help you make the most of the surplus funds to achieve your goals.