Tips for your tax refund if you are thinking of buying or selling a home

Tips for your tax refund if you are thinking of buying or selling a home. 

Deposit

When putting in an offer to purchase a home the standard deposit is 5% typically within 24 hours of subject removal.  These are funds that are put into a trust account until the home’s completion.  These funds will form part of the down payment.  A tax refund is a good way to get the deposit. 

Home Improvements

If you live in an older home, spending some of that refund around the house can lower energy bills. Replacing old windows can improve the efficiency of your air conditioning in the summer and reduce your electric bill. Old appliances can be replaced by models that use less energy. If your kitchen or bathroom is out of date a remodelling project can improve the functionality of your house now and also make it more attractive when you decide to sell.

Mortgage Repayment

Making extra payments on your mortgage can be a great way to save money over the long term. Because so much of your payment on a long-term note goes to pay off the interest, reducing the principal can have an exponential effect over the life of the loan. Even an extra payment or two now can make a big difference in your future obligation to the bank.