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Catch - 22 Mortage vs. RRSP
Each year, as the annual RRSP deadline looms, many Canadians face a dilemma: should they pay down their mortgage or increase their RRSP contributions?

The decision may seem like a catch-22 if you pay down your mortgage, you’ll be debt-free sooner but your future retirement income may suffer. If you contribute to your RRSP, you’ll enjoy the benefits of tax-deferred, compound investment growth but you’ll be no closer to owning your home. What if there was a way to achieve both goals?

In the past, many Canadians have tended towards contributing to their RRSP rather than paying down their mortgage. And, to be fair, there is something more satisfying about seeing an asset grow than watching a liability shrink. In fact, this bias was borne out on a recent Martiz:Thompon-Lightstone survey, in which 66 per cent of Canadians said they would rather put their money toward something else than pay down their mortgage, despite the fact that 82 per cent think paying down their mortgage is important.

You Really Can Do Both
More and more Canadians are discovering a simple, efficient way of paying down their mortgage AND contributing to their RRSP through the use of "flexible mortgage accounts." First developed in Australia, these accounts are designed to significantly reduce the total amount of interest paid over the life of a mortgage by lowering montly interest costs.

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