How to payoff your mortgage 10 years faster?

Turn Your Tax Refund Into a Mortgage Payoff Acceleration Tool

If you haven't maxed out your RRSP yet, and you're in a high income bracket (usually 100k+) now's the time. Last date for RRSP contribution for 2025 is 2nd March 2026. Depending on your income bracket, a contribution can generate a solid refund.

So what do you do with that money when it hits your account?

Here's one of looking at it : Split it into 3 parts.

1/3 - Invest it

Put it into next year's RRSP or max out your TFSA if you have room. Long-term wealth comes from staying invested.

1/3 - Enjoy it

Take your family out for dinner. Plan a small trip. Add it to your summer vacation fund. Financial discipline works best when you actually enjoy some of it.

1/3 - Prepay your mortgage

One lump sum payment per year, combined with accelerated biweekly payments, can cut 8–10 years off your amortization and save you thousands in interest.

Eg. - Prepayments of 5k per year for just 5 yrs, and accelerated biweekly payments will save you $108,000 in interest cost and payoff your mortgage 66 months earlier on a 650k mortgage at 4%, 30 yrs amortization.

Reach out for a dymanic amortization table to run your own prepayment calculations.

I personally aim put around $10-12k towards my mortgage every year and you can have a different number.

It's boring, not as active as trying to get the lowest rate but this strategy drastically cuts my overall cost of borrowing and makes the rate conversation irrelevant.

A word of caution: Only do this if your emergency fund is already in place. If not, then the biggest chunk of your refund should go in your emergency funds.

Also, just do it for your primary mortgage. If you have a rental, don't rush into paying it off early.

The biggest mistake I've made and see it always is getting a refund and watching it quietly disappear into everyday spending.

"We all know what to do. We just don't do it."

This year, actually try doing it

Disclaimer - I'm not a financial advisor, just a mortgage agent interested in personal finance. Some people don't believe in RRSP contributions, feel free to ignore this post.

If you'd like to have an authentic discussion about your real estate plans (purchase, refinance or renewal), I'd be delighted to help you, simply book a meeting here to get started - https://cal.com/jayantbahel/initial-discussion