Go Ahead, Spend Your Tax Refund

Katherine Martin • April 25, 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.

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


RECENT POSTS

How to Legally Assign a Construction Mortgage

By Katherine Martin • September 23, 2026
Why More Mortgage Options Matter—Especially for Assignment Purchases One of the biggest advantages of working with an independent mortgage professional is access to choice. Instead of being limited to one lender and one set of products, mortgage brokers work with multiple lenders—each with different guidelines, risk tolerances, and mortgage solutions. That flexibility becomes especially valuable when your situation doesn’t fit neatly into a “standard” box. A great example of this is purchasing new construction through an assignment contract . Why Assignment Purchases Can Be Challenging Assignment purchases are often viewed as higher risk by traditional lenders. Rather than declining these deals outright, many lenders quietly make them difficult by adding layers of conditions, restrictions, or uncertainty. This can lead to delays, frustration, or financing falling apart late in the process. The Good News There are lenders—available exclusively through the broker channel —that have clear, favourable policies for assignment purchases. With the right lender and proper planning, these transactions are absolutely doable. Typical Financing Requirements for Assignment Purchases While every situation is unique, many lenders that allow assignment financing look for the following: Standard purchase qualification, including income verification, credit, and down payment Assignments accepted at either the original purchase price or current market value Minimum 620 credit score , with no prior bankruptcies or consumer proposals The full down payment must come from the purchaser —seller incentives cannot be used Required Documentation To secure financing, lenders typically require: The original purchase agreement signed by all parties The MLS listing (if applicable) The assignment agreement signed by the builder, original purchaser, and new buyer Any side agreements outlining changes to the purchase price A full appraisal to confirm value This list isn’t exhaustive, but it highlights that while assignment purchases require more coordination, they are very achievable with the right lender and guidance. Final Thoughts Assignment contracts can open doors to great opportunities—but only if your financing supports the transaction. This is where access to multiple lenders and specialized policies makes a real difference. If you’re considering purchasing new construction through an assignment, or if you’d like to explore more traditional purchase options, feel free to connect anytime. I’d be happy to walk you through the mortgage products available and help you choose an option that doesn’t limit your financing possibilities.

Monthly vs. Biweekly Mortgage Payments: Which Is Better?

By Katherine Martin • September 16, 2026
How Mortgage Payment Frequency Affects What You Pay Over Time You’ve probably heard the saying that there are two certainties in life: death and taxes. When it comes to your mortgage, there’s really just one certainty—you’ll repay what you borrow, plus interest. What is flexible, though, is how often you make your mortgage payments. And that choice can have a meaningful impact on how quickly you pay down your mortgage and how much interest you pay over time. The Six Mortgage Payment Frequencies Most lenders offer the following payment options: Monthly – 12 payments per year Semi-monthly – 24 payments per year Bi-weekly – 26 payments per year Weekly – 52 payments per year Accelerated bi-weekly – 26 payments per year Accelerated weekly – 52 payments per year Standard Payment Frequencies The first four options are designed to align with how you get paid. For example: Paid monthly? Monthly mortgage payments may make sense. Paid every two weeks? Bi-weekly payments can align nicely with your cash flow. With these standard options, regardless of how often you pay, the total amount paid over the year is the same —it’s simply divided into more frequent payments. What Makes “Accelerated” Payments Different Accelerated payments work differently—and this is where the real savings happen. With accelerated bi-weekly or accelerated weekly payments, you’re paying a slightly higher amount each time. That extra money goes directly toward reducing your mortgage principal, which lowers the interest you’ll pay over the life of the mortgage. A Simple Example Let’s assume a $1,000 monthly mortgage payment: Monthly: $1,000 once per month = $12,000 per year Semi-monthly: $500 twice per month = $12,000 per year Bi-weekly: $1,000 × 12 ÷ 26 = $461.54 every two weeks = $12,000 per year Accelerated bi-weekly: $1,000 ÷ 2 = $500 every two weeks = $13,000 per year With accelerated bi-weekly payments, you effectively make two extra payments per year without having to think about it. Those extra payments reduce your principal faster, which lowers interest costs over time. Accelerated weekly payments work the same way—you just make smaller payments more frequently. Why This Matters Long Term While it’s difficult to calculate exact savings due to variables like interest rates, terms, and amortization changes, maintaining an accelerated payment schedule over the life of your mortgage can reduce your amortization by up to three years and save a significant amount of interest. The Bottom Line Accelerated payments are a simple, automatic way to lower your overall cost of borrowing—without needing to make lump-sum payments or drastically change your budget. If you’d like to see how different payment frequencies would impact your mortgage specifically, feel free to reach out anytime. I’d be happy to walk through the numbers with you and help you choose the option that fits your goals.
© 2026 

Katherine Martin. All Rights Reserved.