Hi everyone! I survived the move and will write a more detailed post in the coming week but I need some advice.
We didn't have 20% down to purchase this house so we had to pay CMHC insurance - this was rolled into our mortgage. Now the Crown pays for CMHC insurance - but it is a taxable benefit. We received a cheque from the lawyers office yesterday for $3250.00 to cover our CMHC fees. This money doesn't have to be used to pay CMHC, it's ours to do whatever we feel right - I've checked and rechecked, the only thing that we were constantly reminded of is it will be taxed at the end of the year. So my question is: do we put it on our mortgage - which we are on track to pay off in 18years and have a 5yr fixed rate of 2.89%? Or should we roll it into my spousal RRSP so G gets the tax benefit this year? Or should we go on a vacation (lol jk).
We are leaning towards the RRSP since it'll have more time to compound and we are comfortable with our mortgage amount.