When you’re preparing your taxes, you’ll want to have your mortgage statement ready. Here is what you need to know.
1. Lenders send statements out by Feb. 28 at the latest – if you haven’t received it by the first week of March, contact your mortgage provider (asking for it earlier may result in an admin fee added to the mortgage as lenders are busy with preparing their year end statements). Also signing up online may also provide details required.
2. Review the following on the statement:
Property taxes/ life and disability insurance – payment amount and balance on available pre-payments – while the insurance policies are bundled, often there can be errors and not end up the responsibility of the provider.
3. Bring this statement when you do your taxes – there may be available write-offs or grants available to you. If you use part of your home as an office or if any of your borrowing was for investment or renovations for seniors, energy efficiency, etc.
4. Keep your mortgage statement, year-end pay stub and T4 together in an e-file once you get your tax documents back, with the T1 General (full) and Notice of assessment. If you require any borrowing, or there is a better mortgage strategy available in the upcoming year, it’s standard practice to be asked for all of those documents.
5. A very popular strategy is borrowing for RRSP top up – before you do this, check if you qualify under the new stress test for the mortgage you have or if you are hoping to move up the property ladder. The biggest mistake mortgage holders make is not taking into account that every $500 in debt – even for investment takes away up to $100,000 in mortgage amount qualification. So, a little planning can ensure you reach your goals for the upcoming year and optimize your options.
Angela Calla is a 14 year award-winning woman of influence mortgage expert. Alongside her team, passionately assisting mortgage holders get the best mortgage, and educating them on The Mortgage Show on CKNW for over a decade and through her best-selling book The Mortgage Code available on Amazon. To purchase the book click here: The Mortgage Code. Proceeds from a sales will help build a new emergency room at Eagle Ridge Hospital. Angela can be reached at callateam@dominionlending.ca or 604-802-3983.
