Whatever you hope to achieve, the new financial support could help you make it a reality.
After many years of diligently paying the mortgage, the end is finally here. You’ve just made the last payment (and may have done the happy dance). Now what? What’s life like after mortgage? What’s the best way to use those surplus funds? Here are three ideas to consider.
1. Invest for retirement
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 extra boost might help you retire earlier than planned or retire more comfortably.
2. Spread the wealth
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.
3. Pursue a dream
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 could help you make it a reality.
Once your mortgage is paid off (and once your celebrations are finished), talk to your advisor to find effective ways to use the surplus funds for your next big goal.