[Just a Guy]

Well, if you can earn more than you pay, I'd always go that route... So, if your Tfsa earns more than your mortgage go that route. Also, Tfsa can be used if there is a crisis, whereas banks are reluctant to lend you money in one. Speaking from experience, if you have a financial crisis, it's always good to have liquid assets and lots of credit available to see you through it.

 

[Just a Guy]

I am not sure if all banks do this for everyone but when we prepay the mortgage there is an 'available cash' amount where we can pull it out in 2 days if we need it.I have done this twice once with bmo in 2001 and with TD in 2008.There was no fees they just put the mortgage up the amount i took back.

That why I like TD's helocs. You can lock in portions like a mortgage, but as you pay it down, it is still there. Of course helocs appear on your credit report differently than a mortgage, so it's not for everyone...