Tuesday, 12 April 2016


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.

Any opinions?

- M


  1. I'm not sure I understand the Crown paying the fees piece but I would be inclined to put it towards rrsp's if your e-fund is healthy enough to cover any issues that may come up in the new house.

    1. Yeah - our Emergency fund is $5,000 and our moving/house fund is a healthy $11,000. If anything comes up (and we have planned a few things already) I'm confident we can pay it all in cash.

    2. I would go for RRSP option since you don't need the cash and it will reduce the income tax on the benefit.

    3. Thank you for your reply! This is exactly what we did :)