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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How to Access Your Home Equity Wisely

By Marci Deane • April 1, 2026
Need to Free Up Some Cash? Your Home Equity Could Help If you've owned your home for a while, chances are it’s gone up in value. That increase—paired with what you’ve already paid down—is called home equity, and it’s one of the biggest financial advantages of owning property. Still, many Canadians don’t realize they can tap into that equity to improve their financial flexibility, fund major expenses, or support life goals—all without selling their home. Let’s break down what home equity is and how you might be able to use it to your advantage. First, What Is Home Equity? Home equity is the difference between what your home is worth and what you still owe on it. Example: If your home is valued at $700,000 and you owe $200,000 on your mortgage, you have $500,000 in equity . That’s real financial power—and depending on your situation, there are a few smart ways to access it. Option 1: Refinance Your Mortgage A traditional mortgage refinance is one of the most common ways to tap into your home’s equity. If you qualify, you can borrow up to 80% of your home’s appraised value , minus what you still owe. Example: Your home is worth $600,000 You owe $350,000 You can refinance up to $480,000 (80% of $600K) That gives you access to $130,000 in equity You’ll pay off your existing mortgage and take the difference as a lump sum, which you can use however you choose—renovations, investments, debt consolidation, or even a well-earned vacation. Even if your mortgage is fully paid off, you can still refinance and borrow against your home’s value. Option 2: Consider a Reverse Mortgage (Ages 55+) If you're 55 or older, a reverse mortgage could be a flexible way to access tax-free cash from your home—without needing to make monthly payments. You keep full ownership of your home, and the loan only becomes repayable when you sell, move out, or pass away. While you won’t be able to borrow as much as a conventional refinance (the exact amount depends on your age and property value), this option offers freedom and peace of mind—especially for retirees who are equity-rich but cash-flow tight. Reverse mortgage rates are typically a bit higher than traditional mortgages, but you won’t need to pass income or credit checks to qualify. Option 3: Open a Home Equity Line of Credit (HELOC) Think of a HELOC as a reusable credit line backed by your home. You get approved for a set amount, and only pay interest on what you actually use. Need $10,000 for a new roof? Use the line. Don’t need anything for six months? No payments required. HELOCs offer flexibility and low interest rates compared to personal loans or credit cards. But they can be harder to qualify for and typically require strong credit, stable income, and a solid debt ratio. Option 4: Get a Second Mortgage Let’s say you’re mid-term on your current mortgage and breaking it would mean hefty penalties. A second mortgage could be a temporary solution. It allows you to borrow a lump sum against your home’s equity, without touching your existing mortgage. Second mortgages usually come with higher interest rates and shorter terms, so they’re best suited for short-term needs like bridging a gap, paying off urgent debt, or funding a one-time project. So, What’s Right for You? There’s no one-size-fits-all solution. The right option depends on your financial goals, your current mortgage, your credit, and how much equity you have available. We’re here to walk you through your choices and help you find a strategy that works best for your situation. Ready to explore your options? Let’s talk about how your home’s equity could be working harder for you. No pressure, no obligation—just solid advice.

Smart Strategies to Save for Your Down Payment

By Marci Deane • March 25, 2026
How to Start Saving for a Down Payment (Without Overhauling Your Life) Let’s face it—saving money isn’t always easy. Life is expensive, and setting aside extra cash takes discipline and a clear plan. Whether your goal is to buy your first home or make a move to something new, building up a down payment is one of the biggest financial hurdles. The good news? You don’t have to do it alone—and it might be simpler than you think. Step 1: Know Your Numbers Before you can start saving, you need to know where you stand. That means getting clear on two things: how much money you bring in and how much of it is going out. Figure out your monthly income. Use your net (after-tax) income, not your gross. If you’re self-employed or your income fluctuates, take an average over the last few months. Don’t forget to include occasional income like tax returns, bonuses, or government benefits. Track your spending. Go through your last 2–3 months of bank and credit card statements. List out your regular bills (rent, phone, groceries), then your extras (dining out, subscriptions, impulse buys). You might be surprised where your money’s going. This part isn’t always fun—but it’s empowering. You can’t change what you don’t see. Step 2: Create a Plan That Works for You Once you have the full picture, it’s time to make a plan. The basic formula for saving is simple: Spend less than you earn. Save the difference. But in real life, it’s more about small adjustments than major sacrifices. Cut what doesn’t matter. Cancel unused subscriptions or set a dining-out limit. Automate your savings. Set up a separate “down payment” account and auto-transfer money on payday—even if it’s just $50. Find ways to boost your income. Can you pick up a side job, sell unused stuff, or ask for a raise? Consistency matters more than big chunks. Start small and build momentum. Step 3: Think Bigger Than Just Saving A lot of people assume saving for a down payment is the first—and only—step toward buying a home. But there’s more to it. When you apply for a mortgage, lenders look at: Your income Your debt Your credit score Your down payment That means even while you’re saving, you can (and should) be doing things like: Building your credit score Paying down high-interest debt Gathering documents for pre-approval That’s where we come in. Step 4: Get Advice Early Saving up for a home doesn’t have to be a solo mission. In fact, talking to a mortgage professional early in the process can help you avoid missteps and reach your goal faster. We can: Help you calculate how much you actually need to save Offer tips to strengthen your application while you save Explore alternate down payment options (like gifts or programs for first-time buyers) Build a step-by-step plan to get you mortgage-ready Ready to get serious about buying a home? We’d love to help you build a plan that fits your life—and your goals. Reach out anytime for a no-pressure conversation.

Bank of Canada Holds Rate at 2.25% — March 18, 2026

By Marci Deane • March 18, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For anyone watching the mortgage market — whether you're renewing, purchasing, or simply keeping an eye on borrowing costs — here's a breakdown of what was announced and what it may mean for you.