Josianne is in her early forties and a single mother of two beautiful daughters of 9 and 12-years old. Recently, she realized that she had more than $100,000 in unused RRSP contribution room. Based on the advice given by her financial security advisor and her mortgage broker, here are Josianne’s decisions:

Considering that her house has increased in value in recent years (current market value of $300,000), that her mortgage loan was only $75,000, and with the help of her financial planner, Josianne decided with the to re-borrow against the value of her home to maximize her RRSP and buy $100,000 worth of RRSPs.

Since Josianne has an annual salary of $77,000, it makes sense that she would not deduct her entire $100,000 RRSP purchase in the same tax year. With the help of her accountant, she will spread the tax deduction over several years to maximize the returns that will considerably increase her child benefits and tax refunds. She will use part of these additional amounts (child benefits and tax refunds) to create an extra financial cushion for her daughters' university tuition and, with the rest, make prepayments on her mortgage to reduce the amortization.

One of Mortgage Planners’ great strengths is to work in collaboration with various professionals to get you a set of guidelines adapted to your personal situation.