Ask anyone who owns their own home about the obvious advantages and they'll more than likely tell you that there's an immense amount of pride in being able to say that they've got their own space. But there are many other pluses as well, and some of these are good tax advantages.

For instance, most times any capital gain from the sale of your principle residence is usually non-taxable. You home also represents excellent collateral. This means that you can often go to the bank to borrow other money for different projects that you might want to embark on, or the collateral in your home represents the ability to borrow for other purchases.

As well, you can deduct the cost of operating a business out of your home. These deductions also often include a proportionate amount of household expenses. Still, it should be mentioned that the best way of avoiding trouble is not to overextend yourself with credit. It's essential that you determine what you can afford and then stay within those means. Still, all the experts suggest that the best way for you to look after your finances is to cut costs in your mortgage wherever possible and there are several ways to do this.

First of all you should consider what it means to have a standard mortgage that's usually not tax deductible and will usually run a term of 30 years. All the experts agree that there are several other ways to pay this down, and one of the best is to get a short term variable rate mortgage. Also, if your cash flow is strong and your job secure, you can save literally thousands of dollars in interest payments by changing your amortization rate from 25 to 15 years.

Here's another suggestion that will increase your equity and bring the principle down. When you go to renew your mortgage, make sure to dump a fair amount on the principle so that you owe less in the long run. Many institutions allow you to pay extra once a year, or add an extra payment once a year, or pay a lump sum annually instead of monthly.

 Remember that the equity that you've got in you home will quite often dictate how you live in you later years and what kind of retirement you will have. It's always a good idea to plan to increase your equity by paying your mortgage down as often as you can.