There are over 10million TFSA accounts in Canada according to this article in the Financial Post. Wow, it’s great to see that level of savings….
But hold on…..is this the right strategy for those of us with a mortgage? Well, if you have a mortgage on your principal residence and the interest is not tax-deductible, then I think it’s NOT the right strategy.
For most of us, the interest on a residential mortgage is not tax deductible (I say for most of us because if you rent out part of the home or use it for your business then you may be able to claim a tax deduction).
Take those after-tax $$dollars and pay your mortgage first before putting them into a TFSA… reduce the amount of non-deductible debt and then focus on a TFSA…. If you own an investment property, then this strategy may vary slightly…. but for most of us, let’s get rid of that mortgage first…
And yeah, for those higher income earners looking to diversify, then sure.. A TFSA makes sense. But for most Canadians, I would suggest getting rid of the mortgage is a better strategy.
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Steve Garganis 416 224 0114 firstname.lastname@example.org
As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.