Quote:
Originally Posted by lowside67
With mortgage rates as low as they are, it doesn't make sense to put ANY of it on the mortgage.
If you have TFSA or RRSP contribution room available, that is a no brainer, although in which order and how much/when (in the RRSP case) is worth some analysis as it's quite individual.
If I was out of registered contribution room availability (including 2021 for both TFSA and RRSP), then I'd think long and hard about mortgage vs non-registered. In the long run, I am confident that the after-tax return in the market will outweigh the interest, but it's at least closer and if you are a risk-adverse person, you might sleep better paying down mortgage.
But if it's TFSA/RRSP versus pay down mortgage, it's a no brainer.
-Mark
EDIT - I see I posted this exact same thing on page 1 in May 2019, while this was true then, with how much lower mortgage rates are now, the answer is now even more obviously cut and dry than it was then.
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Ok - I got a question for you... Let's say you inherit that amount and have no room in your TFSA, have room in your RRSP but also collect a pension (survivor's pension). If I max out my RRSP then I may not be able to collect old age security/CPP in the future correct? Would it make more sense to do a registered account at this time? If my income is not too large currently? Or should I just max out the RRSP and forget about collecting anything from the government later?