FP Answers: Should we use the money in our TFSAs to pay off our mortgage?
Should we use the money in them to pay off our $170,000 mortgage? The current rise in interest rates is a motivating factor for me to get the mortgage paid off, but I'm not 100 per cent sure it's my best financial move. The mortgage is my only debt and between my TFSA and savings, we could pay off the mortgage on renewal. As you approach your mortgage renewal date, you should be proud that you have put yourself in a position where you have the choice to pay your mortgage down at renewal. The new reality of higher borrowing costs makes your idea of using your savings to pay off your mortgage quite attractive, but there are several things you should consider first. Using all your TFSA money and savings to pay off the mortgage essentially turns available liquid money into illiquid home equity. Of course, you can rebuild your savings using the money you formerly put against your mortgage, but this takes time. An excellent middle ground may be to pay down some of your mortgage with your savings and keep your TFSA intact and invested.