[edn88]

So, if you do the math (and I won't profess I did it right) and depending on you tax bracket... let's say you put $10K into RRSP or $6000 onto your mortgage (they end up being the same after you get your $4000 tax refunt.

After 10 years, the RRSP is worth around $14K with a 3.5% rate of return, inside your mortgage it is worth $10.8K. So it depends on your marginal tax rate when you take it out. If you are paying 25% then your RRSP is actually worth just a little less at $10.6.

I think someone suggested putting a chunk of money on your RRSP and use the tax refund to pay down your mortgage.

The good news about paying down your mortgage early is you will get extra cash flow sooner (which if you are disciplined) is a good thing.

Paying into your mortgage means you will not have to live off your kids when you are old!