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But before tempting to splurge on an expensive new car or luxury vacation, experts say it’s important to review the financial plan for the next chapter to make sure you can go anywhere, anytime.
Nancie Taylor, an investment advisor at Meridian Credit Union in Fonthill, Ontario, said repaying the mortgage offers opportunities for a variety of things.
“My job is not to tell them that you should do it, that’s it,” she said of clients.
“More, well, that’s what you are today. So where do you want to go tomorrow? It’s fun, it’s fun.”
For some, this may be early retirement, while others may mean more travel, or financially helping children or grandchildren.
But while mortgage payments can form the biggest part of the cost of home ownership, that’s not the only fee, so Taylor said the first step is to figure out how much cash to release.
“Often people have property taxes and life insurance,” Taylor said. So that means savings may be less per month than you think.
Additionally, utilities and maintenance costs may add up. Appliances break down or wear out, things like roofs and windows need to be replaced regularly, not to mention any desire to update and upgrade the bathroom or kitchen.
Taylor says if you have other debts, especially high interest debt, such as credit card balances, it’s time to solve this with your additional cash flow. If you’ve been ignoring RRSP, TFSA or RESS contributions, now is the time to catch up.
“If you don’t maximize your RRSP every year and have a lot of carry space, redirecting some cash flows will actually give you more pockets,” she said.
Repaying a mortgage can also be the time to review other parts of your financial plan, such as life insurance, to ensure that your coverage is still appropriate because you don’t have a lot of outstanding debts.
“If you don’t have debt, then maybe you’re overinsured now. So, it’s a good time to put it in the light and start looking for other types of insurance, like long-term care insurance,” Taylor said.
A free mortgage can also be a good time to review your will and real estate plans to ensure your greatest debt is paid.
Sumaiya Bhula, senior manager at TD, said there is no one that works for all solutions, so it is important to have a plan that suits you at this critical moment.
“The reality is, if you want to continue building your portfolio and wealth, you need to really look at what your long-term goals are as a whole,” she said.
“That’s where the plan you know is really in place, where you can look at the cash flow, and where you should be allocated, and then how many X, Y and Z are still left.”
Taylor says having a plan is key because you don’t want to miss out on the opportunity to use extra cash flow to get closer to your financial goals.
“I just think in your 50s, it’s a key age to make sure you redirect that money to work as hard as possible,” she said.
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Last modified: August 9, 2025
