Should I use my RRIF to pay off my mortgage?

Question: I have $82,000 in a RRIF and a morgtage of $30,000. Should I pay off my mortgage?


If you mean should you withdraw the money from the RRIF to pay off the mortgage, it depends on your overall financial picture and your tax bracket. Figure out how much you’d have to withdraw from the RRIF to end up with enough money after-tax, to pay off the $30,000 (if you are in the top tax bracket it would be close to $60,000). Then compare the loss of income from the RRIF with the savings you would achieve by not having to make monthly mortgage payments.

^Also, be sure you can pay off the mortgage without penalty. Sorry it’s so complicated, but that’s the reality of your situation.