Go Ahead, Spend Your Tax Refund

Marci • April 15, 2016

This article was written by Sandi Martin from Spring Personal Finance and was originally published here on March 29th 2016.

Ah, spring. The time of year when flowers bloom, birds sing, and the entire internet starts yelling at you for getting a tax refund or – even worse – getting a tax refund and then spending it.

The horror.

The conventional wisdom goes something like this: You shouldn’t get a tax refund, because it means that your HR department deducted too much tax from your paycheque, and you’ve been giving the government a tax-loan all year, you dummy.

Or this: The only thing you should spend your tax refund on is an RRSP contribution, because then your taxes will be lower this year, too, creating a virtuous circle of lower taxes for your income-earning lifetime. (You dummy.)

They’re all missing the point.

The problem here is one that finance writers themselves caution you against: your tax refund isn’t somehow a separate class of money than the stuff that’s deposited to your bank account every two weeks , and thinking about it differently than you think about your paycheque leads to the finger-wagging advice above…or a guilty feeling for not following it.

Let’s think of it in a different way, and maybe it will help: your tax refund is part of last year’s income, and you’re getting it today instead of with your paycheques last year. What would you have done with it if you’d been getting it all year rather than a month from now?

This is a good argument for asking to reduce your income tax deductions at source if you regularly get a refund because you pay union dues, childcare costs, contribute to your RRSP or donate to charity (among other things). Not because of the interest-free government loan malarky, but because you’ll be able to spend the income you earn when you earn it, instead of the following year. Be careful, though: if you’re not totally sure that you’ve calculated correctly, or that your tax situation this year will be the same as last year, maybe a tax free loan to the government with a refund in April is a better scenario than the reverse, especially if the resulting tax bill comes as a surprise.

Let me put it another way: what’s the goal of paying less in taxes? If your answer is “ummm…to pay less taxes?”…think of the possibilities you’re missing! (Also, you’d be a great finance writer.) Unless your goal in life is to stick it to the man, or to stop funding Provincial Program X or Federal Program Y (good luck with that, by the way), you probably want to give the government less of your money so you can use it to do the things you want to do with it.

Take the big picture view, and look at a refund as just another piece of your total income pie (mmmm….pie….). Use the total pie to spend on the things that are important to you, whether that’s as part of your overall debt reduction efforts, saving to quit your job, or finally paying for that activity your kids have been dying to join.

Treating your income tax refund as a special class of money that can only be used to do virtuous things actually encourages the other bad behaviours finance writers are bugging you about all the time: you’re in danger of relying on a future windfall to solve your spending or saving problems.

Don’t do that.

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What Older Canadians Should Know About Mortgage Financing

By Marci Deane • August 26, 2026
Retirement doesn’t always mean a mortgage-free life anymore. And that’s okay. Between higher home prices, rising living costs, and longer life expectancy, many Canadians are choosing to retire with a mortgage or refinance later in life to create more flexibility. The goal isn’t perfection. It’s having options that actually support the life you want to live. If you’re thinking about how a mortgage fits into your retirement years, you’re not alone—and you’re not out of options. Why work with an independent mortgage professional? Because retirement financing is not one-size-fits-all. Unlike a single bank, an independent mortgage professional can look across multiple lenders and solutions to find what truly fits your income, equity, and long-term plans—not just what one institution offers. Mortgage options available in retirement Traditional Mortgage Solutions Many retirees still qualify for standard mortgages. Pension income, investment income, and other retirement sources can often be used to support an application. If you have good equity and solid credit, this is often the lowest-cost option. Reverse Mortgages For homeowners 55+, a reverse mortgage can unlock tax-free equity from your home with no monthly payments required. There’s no income verification or medical questions, making it a helpful option for those who want to improve cash flow while staying in their home. Home Equity Line of Credit (HELOC) A HELOC allows you to access your home equity as needed and only pay interest on what you use. Many retirees appreciate the flexibility and like consolidating income and expenses in one place. Private Financing Sometimes life throws a curveball. If timing, income, or credit create challenges, private financing can act as a short-term bridge. It’s not usually the first choice, but it can provide solutions when traditional lenders can’t. If you’re approaching retirement—or already there—and wondering how your mortgage fits into the picture, let’s talk. A clear plan can make retirement feel a lot more secure and a lot less stressful.

What Online Mortgage Calculators Can—and Can’t—Tell You

By Marci Deane • August 19, 2026
What Online Mortgage Calculators Can—and Can’t—Tell You Online mortgage calculators are everywhere—and on the surface, they seem like a no-brainer. You plug in some numbers, and out pops what you can “afford.” Simple, right? Not quite. While the math itself is correct, the story behind those numbers is often misleading. Mortgage qualification isn’t just about numbers—it’s about context, risk, and lender policy. And that’s where calculators fall short. The Numbers Are Accurate—but the Picture Isn’t An online calculator can show you what a payment might look like at a given interest rate, or how making extra payments could reduce your amortization. That’s useful information! But when it comes to mortgage qualification , calculators don’t account for the many variables that lenders consider, such as: Your credit history and score Employment type (salary, self-employed, contract) Outstanding debts and monthly obligations Assets, savings, and down payment source The property type and location you’re buying Lenders evaluate all these factors through their internal risk models. That means two people entering the exact same numbers into a calculator could receive very different results when they actually apply for a mortgage. Why Online Calculators Can Mislead You When you see a “How much can I afford?” or “Mortgage Qualification” calculator online, it’s easy to treat the result as fact. But these tools don’t know your financial story—they only crunch the data you enter. A calculator can’t predict how a lender views your risk, how new mortgage rules apply to your file, or how things like spousal support, car loans, or variable income will impact approval. In short: calculators estimate payments, not qualification . Use Calculators the Right Way Don’t get us wrong—online calculators still have value. Use them to explore different “what-if” scenarios: How do payments change with different down payment amounts? How would a rate increase affect affordability? What if you added $100 a month to your payments? These tools are great for helping you understand your comfort zone. Just remember: they’re a starting point, not a green light. The Real First Step: Get a Pre-Approval If you’re serious about buying a home, skip the guesswork and get a mortgage pre-approval . It’s quick, free, and gives you real-world clarity on what you can afford. A pre-approval looks at your full financial picture—income, credit, debts, assets—and provides a framework for your purchase price, payment range, and rate options. It’s the only way to get a reliable answer to the question, “What can I really afford?” Final Thoughts Online calculators are convenient, but they can’t replace expert advice. Think of them as a starting point, not a solution. A professional mortgage broker can interpret the numbers, navigate lender policies, and tailor your financing strategy to your actual situation. If you’d like help understanding your true buying power—or want to get pre-approved with confidence— reach out anytime . I’d be happy to walk you through your options and help you make sense of the numbers.

Going Through a Divorce? Don’t Let Your Credit Take the Hit

By Marci Deane • August 12, 2026
Going Through a Divorce? Don’t Let Your Credit Take the Hit Divorce is stressful enough without adding financial fallout to the mix. Between lawyers, paperwork, and emotional strain, it’s easy to overlook how a separation can impact your credit. But your financial future depends on protecting it now—because long after the dust settles, a damaged credit score can linger. Here are a few smart steps to help keep your credit strong and your finances steady as you move forward. 1. Take Control of Joint Debts When it comes to joint debt, both parties are equally responsible—no matter what your divorce agreement says. If your ex misses a payment on an account with your name attached, your credit takes the hit too. Go through all joint credit cards, loans, and lines of credit. Wherever possible: Close joint accounts to stop future shared use. Transfer balances to the person responsible for repayment. Notify lenders in writing of any changes to account ownership. Once everything is updated, pull your credit report after three to six months to confirm all joint accounts have been closed and reporting correctly. Mistakes happen—stay proactive to prevent surprises later. 2. Open Your Own Bank Accounts Separation means financial independence, and that starts with your own banking. Open a new chequing account in your name only and redirect your pay deposits and bill payments there. At the same time, close any joint bank accounts and change passwords on existing online banking and credit profiles. Even in peaceful separations, shared access can cause confusion—or conflict. Protect yourself by ensuring your money and information are secure. 3. Start Building Credit in Your Name If most of your past credit was tied to your spouse’s name, now’s the time to establish your own. Apply for a small personal credit card or secured credit product . Use it sparingly and pay it off in full each month. This helps you build a solid individual credit history, setting the stage for future goals like buying a home, refinancing, or starting fresh financially. 4. Keep an Eye on Your Credit Monitor your credit report regularly for errors or unexpected changes. You can request free reports from both major credit bureaus in Canada— Equifax and TransUnion —once a year. Tracking your credit isn’t just about catching mistakes; it helps you see your progress as you rebuild your financial independence. Final Thoughts Divorce can be emotionally draining, but protecting your credit doesn’t have to be complicated. By taking a few careful steps now—closing joint accounts, building credit in your name, and monitoring your reports—you’ll safeguard your financial health and gain peace of mind as you start your next chapter. If you’d like personalized guidance on managing credit during or after a divorce, reach out anytime. I’d be happy to walk you through your options.