If you can resist the urge to spend, putting your well-earned tax cuts towards your mortgage can save you $1,000s in interest and years off your home loan. Also, having this extra income means your borrowing capacity is increased. For example, a single person earning $120,000 per year could now borrow around $640,0000, an increase of $25,000 after the tax cuts. A married couple with 2 dependents earning a combined gross income of $280,000 could increase their borrowing capacity by as much as $75,000.
