Rrsp contribution vs mortgage lump sum repayment

Our total income is around cad 330,000.
Married couple with newborn

Remaining mortgage is 430K and currently the rate is 2.69%. We need to renew the mortgage in August this year ( expecting 4.5-5%)

Also planning to buy a house upcoming year.
Would you purchase rrsp to decrease tax payable or repay mortgage to lower interest?

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Sorry ! Irrelevant query - 330k is a great income , are u both in consulting ?

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330k is impressive income but how is it distributed? If it’s 165k each and you expect it to grow then saving your contribution room until you hit 220k+ and have a marginal tax rate of 54% will give you a better return vs a marginal tax rate in the 40s if you both have 165k.

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Wow. Marginal tax rate of 54%? Did not know it was tha thigh.

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I would repay mortgage

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Considering you are planning to buy another property next year, paying off some of your existing mortgage will also help you improve your debt ratios. That might be useful during your discussions on another mortgage

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Dear Sir
I m interested in mortgage sales In Canada.
I m living in Pakistan and I have 15 years experience in marketing and sales in banking sector in consumer products just like Auto finance and personal loans and mortgage loans and credit cards sales.
You give me a chance for this job.
I assured you I will be give you good results.
Thanks and Best Regards,
Tanveer Ahmed

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Need more details to provide an opinion.

How large of a $$$ contribution vs mortgage pre-payment?

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Yes agree, that is why I started with ‘if you don’t need access to the capital’

However, you can only access 65% of the appraised value of your home in Canada. At a certain point doesn’t make sense to pay the mortgage off if that’s your play.

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Repay the mortgage, definitely

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Once u pay off the mortgage, your investment strategy then becomes more fearless as now you already have a paid off house.. You can go in for more growth stocks..
Plus at the end of every paycheck it's nice to see no more money being eaten up by interests costs

Rrsp is the way to go. Market returns avg 8%+

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Just curious. What is your take home pay after taxes on this great income? Regards

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