Rental and Investment strategy
I’m looking for guidance on the most effective investment strategy for my rental income in relation to my current mortgage and tax situation.
·     Â
Rental
property: Fully paid off, generating $33,600
annually.
·     Â
Primary
residence mortgage: $420,000,
3.5% variable rate.
·     Â
I have been doubling
my mortgage payments, contributing $4,200/month,
and previously applied $2,800/month
of rental income toward the mortgage, for a total of $7,000/month.
At current rate mortage will be paid at same time as retirement.
·     Â
2025 taxes:
Approximately $8,000, driven by
higher combined wage and rental income.
My
current plan: I’m considering depositing the rental income into a cash TFSA, then moving the accumulated
amount into my RRSP early in
February, as I have contribution room in both accounts. The goal is to reduce
my taxable income, but this approach slows down my accelerated mortgage
repayment.
My
question: Given this setup, is it more advantageous to continue
aggressively paying down the mortgage, or to prioritize tax‑advantaged
contributions (TFSA → RRSP) with the rental income and accept a slower mortgage
payoff?
I’m hoping to understand the trade‑offs
and what strategy may be most beneficial in the long term.
