What will you do with your Tax Return?

Give Your Tax Refund to Your Lender?

While we’re on the theme of prepayments, here’s another prepayment idea.

This year’s average Canadian tax refund is $1,506 according to Canada Revenue Agency (Source: FP).

That’s enough for a shiny new TV, laptop, trip to Vegas or…a mortgage pre-payment.

If you have no higher-returning uses for the money, why not plop that hard-earned refund down on your mortgage? A $1,500 lump sum pre-payment is a risk-free investment that will save over $2,300 in interest over the life of your mortgage.*

The best part is, unlike earned interest (from a GIC or traditional investment), you don’t pay tax on mortgage interest you save.

If you have any mortgage questions or need some advice feel free to call me at any time 250.826.5679 of adams.mortgage@shaw.ca

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* Example based on a 25-year amortization and 3.99% interest rate.