Mortgage interest rates are rising this year, after being at historic lows for a decade. As they go up, the owners may want to reconsider their financial plan. Should they work to pay their mortgage or contribute to their RRSP or TFSA?   First, before considering these options, it is best to cancel any credit card debt or other high interest loans, as quickly as possible. You should compare the rate of return in your RRSP or TFSA with the mortgage interest rate. If you can get a high enough return, it may be better to keep the mortgage for now.   The mortgage payment offers guaranteed savings, while the returns of RRSP are not guaranteed. However, you can get more peace of mind by paying the mortgage first. As a mortgage is a form of forced savings, once you pay, you should make sure to continue directing the same amount in another investment, otherwise you will lose opportunity by saving for a future retirement.   RRSP contributions offer tax savings in the year in which you contribute. If your marginal tax rate is higher now than it will be when you retire, then it is better to contribute to your RRSP and save on taxes. If you get a large tax refund, you can use it to pay your mortgage.   Remember that you must pay taxes when you withdraw funds from the RRSP. If you think your tax rate will be higher once you retire, contributing to the TFSA is the way to go. While you do not receive a tax savings when completing your TFSA, you are not subject to taxes when you withdraw money. TFSAs also offer flexibility. If you want to get money to pay for a renewal, for example, you can do it without taxes.   In Canada, the mortgage interest in the principal residence is not tax deductible as in the United States. However, if you are thinking of investing in other properties and renting them, the mortgage interest expenses on the rental property are deductible.   Do not hesitate to contact me if you need advice when making this type of decision. I will gladly guide you to the most convenient way for your current situation.