If you are expecting a tax refund this year from Revenue Canada here are some suggestions to how your tax refund can help you own your home sooner.
1. If your mortgage has room for a lump sum pre-payment you can apply your tax refund directly to your mortgage. You’ll pay off your mortgage years faster and can potentially save thousands of dollars over the amortization of your mortgage.
2. If your mortgage is up for renewal, consider paying as much towards your principal as possible either before renewing your mortgage. Applying any lump sum payment towards your mortgage can save you substantially over the long term. If you’d like to know how much even a small lump sum payment can make over your amortization contact me and I can show you.
3. Thinking of buying a rental or vacation property? Consider putting your tax refund towards your down payment.