Rates of returncan vary among different kinds of investments and investment styles. For the purposes of this tool, the suggested range is 2% – 7%*.
*For illustration purposes only;, your rate of return may vary. For example, if you have only stocks in your portfolio, you may see better than 7% return on your investment.
This is the amount of money you have to put towards either your RRSP or your mortgage.
Option A: Pay down mortgage then invest savings into your RRSP
If you invest $10,000 towards your mortgage, your amortization period reduces from approximately 20 years to 19 years.
Once your mortgage is paid off, if you then invest that same monthly mortgage payment into your RRSP, it will be worth $32,181.25 by the end of year 20.*
Option B: Contribute to your RRSP
If you invest $10,000 into your RRSP instead, your savings over 20 years will be $41,503.16.*
*Total savings include interest and applicable rebates.
Option A: Pay off your mortgage then take what you had been spending on mortgage payments and save it in your RRSP.
If you put $10,000 towards paying off your mortgage, the length of time it will take you to pay it off shrinks from about 20 years to 19 years.
Once your mortgage is paid off, if you take that same monthly payment and put it into your RRSP, it will be worth $36,739.88 by the end of year 20.*
Option B: Put the money in your RRSP
If you put $10,000 in your RRSP instead of your mortgage, you will have $29,898.65 saved in 20 years.*
*Total savings include interest and applicable rebates.
TALK TO AN ADVISOR ABOUT THE BEST STRATEGY FOR YOUR RRSPS
An advisor can help you put together a retirement savings plan that is right for you.