It’s Tax Season, so it’s the perfect time to address what homeowners can do with their tax refund.

What to do with a tax refund in Canada? That’s an important question. As a homeowner presumably with a mortgage that’s still in process of being paid off, there’s a lot you can do with the arrival of a large sum of money like this. Here are some ideas.

Pay Down Your Mortgage

Mortgages are necessary but they’re a debt that a homeowner has to carry with them for decades in most cases. If it’s possible to put a little extra towards your mortgage, you’re slicing more from your long-term debt. It’s a smart move if there’s nothing else around the house that requires an immediate fix. Make sure to contact your financial institution to find out what your maximum yearly allowance is.

Curb Appeal Improvement

If you aim to sell your home in the next two years, investing in some curb appeal is smart. Landscaping and gardening will more than get you your money back on sale and is a lot less expensive than installing a deck or patio. Pressure washing your siding, eavestroughs or even painting the exterior of your home can add that spark you’ve been looking for and may completely change the look of your home.

Replace An Inefficient Appliance

If there are issues with your refrigerator, oven, dishwasher, or washing machines preventing you from getting the most from it, buying a more efficient appliance is one way to spend your tax refund. Not only will it help save on energy costs in the long run, it can also improve the look of your kitchen!

Build Up Your Emergency Fund

If you have an older home, we don’t need to tell you – things break and repairs grow needed. Unexpected expenses come up over time and if you haven’t previously budgeted with an emergency fund, you might have to put that on a credit card, invest in your RRSP’s or TFSA. Review your finances to determine where you can utilize your hard earned money.

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Put it Towards A Major Renovation

If you’ve been wanting to renovate your kitchen or bathroom for the longest time, or have your eye on a similar large renovation, money from a tax refund might be everything you need to properly budget for it later this year or next.

Install A New Roof

Canada gets hit with all sorts of weather year-round. If you don’t have a high-quality roof, it’s going to take quite the beating and eventually need a full replacement. Taking your tax refund and purposing it towards a new roof can improve energy efficiency inside, lower utility bills, improve curb appeal, and increase the overall value of the property.

Refinish Your Basement

A lot of homeowners in Toronto living in semi-detached and detaches homes may want to renovate their basement into an independent unit and make it available to rent. A tax refund of a moderate-to-significant amount can be reserved for the future in a basement-dedicated savings account or help jumpstart a renovation.

Make Minor Home Improvements

Smaller home improvement projects for under $1,000 are a great way to immediately see the rewards of a tax refund. Spending on repainting a bedroom, investing in a smart home security system, installing new faucets, buying a programmable thermostat, or re-designing your main living space are all worth the investment. Re-instill some pride in your home and infuse it with a little more personality.


Some of the best ways to use a tax refund for homeowners may not be that exciting but the investment’s worth it. What you’ll receive as a reward is a stronger, more enjoyable, and more appealing property all-around.