Mortgage-Free: What to Do Next and Fun Ways to Celebrate Your Big Milestone

Apr 21

Paying off your mortgage is a monumental achievement—one that many Canadians dream about for years. Once that final payment is made, it's time to celebrate! But what comes next? Here’s a guide to help you navigate your newfound financial freedom and make the most of being mortgage-free.

1. Celebrate Your Milestone

First things first—celebrate! Paying off your mortgage is no small feat, so take time to mark the occasion with family and friends. Here are a few fun ways to celebrate:

Host a Mortgage-Burning Party: This long-standing tradition involves symbolically burning a copy of your mortgage paperwork to signify freedom from debt.
Paint Your Front Door Red: In some cultures, a red door symbolizes prosperity and that the home is fully paid off. It’s a bold, fun way to show off your accomplishment.

2. Contact Your Lender

Once you’ve paid off your mortgage, your lender should provide you with a discharge statement. This document confirms that your loan has been paid in full. Ensure they also release the lien on your property, which makes you the sole owner of your home.

3. Update Your Home Insurance

Many Canadians have their home insurance tied to their mortgage provider. Without the mortgage, you can shop around for better rates or adjust your coverage based on your needs. Be sure to inform your insurer that your mortgage has been paid off.

4. Reassess Your Financial Goals

With no monthly mortgage payments, you’ll have more disposable income. Here are some smart ways to allocate it:

Build an Emergency Fund: If you don’t already have 3-6 months’ worth of living expenses saved, now is a great time to start.
Invest for the Future: Consider boosting contributions to your RRSP, TFSA, or other investment accounts to grow your wealth.
Plan for Retirement: Work with a financial advisor to ensure your retirement savings align with your goals.Paying off your mortgage in Canada is an incredible achievement that opens the door to new possibilities. By taking thoughtful steps with your finances, you can ensure your hard-earned freedom leads to long-term stability and happiness.

Paying off your mortgage in Canada is an incredible achievement that opens the door to new possibilities. By taking thoughtful steps with your finances, you can ensure your hard-earned freedom leads to long-term stability and happiness.