Given it’s a leap year, the deadline to contribute to your Registered Retirement Savings Plan (RSP) for 2023 is technically extended by one day as the deadline lands on February 29th, 2024. For those who have both a mortgage and who contribute to Registered Retirement Savings Plans (RSPs), the two combined offer a simple strategy for retirement planning, debt management, and growing your property’s equity.
Leveraging the tax advantages of your RSP to reduce your taxable income through tax-deductible contributions is Step One. Step Two is using the resulting tax refund to make a lump-sum payment on your mortgage. Not only will this accelerate debt-free homeownership, but it can also save you thousands in interest payments over the life of your mortgage.
Aligning your RSP strategy with your mortgage payments can create a dual benefit. By consistently contributing to your RSP while making mortgage payments, you’re not only building home equity but also grows your retirement fund. Speaking with your financial planner and me on the mortgage side can help you formulate the plan that makes the most sense for you. We are here to help you strike the best balance between debt reduction and wealth accumulation in alignment with your goals. And if you don’t have a financial planner, I would be happy to make an introduction.
With the right RSP-mortgage strategy, you’ll be on the path to a more financially secure retirement while paying off your mortgage faster than you may have thought possible.
Feel free to reach out, I look forward to seeing how I can help.