Illustrate a first year with your clients
Use this public illustration to explain principal repayments, reborrowing and interest to clients over a first year. Adjust the assumptions to discuss the mechanism. It does not confirm a client’s eligibility, a tax deduction or a future outcome and does not replace the program’s professional tool.
A client scenario over 12 months
Illustrate how principal repaid on a client’s mortgage could be borrowed again to invest, over 12 months.
After 12 months
Illustrative example, not a personalized recommendation.
Illustrative example, not a personalized recommendation. Monthly mortgage payment: $1,744.81. Remaining mortgage balance: $293,768.23. Credit line balance borrowed to invest: $6,231.77. Total debt after 12 months: $300,000.00. Credit line interest over 12 months: $169.85.
- Monthly mortgage payment
- $1,744.81
At the start: mortgage only
After 12 months
- Remaining mortgage balance
- $293,768.23
- Credit line balance borrowed to invest
- $6,231.77
- Total debt after 12 months
- $300,000.00
- Starting total debt
- $300,000.00
Mortgage + credit line = starting total debt. The composition of the client’s debt changes; it does not decrease in this simulation.
- Credit line interest over 12 months
- $169.85
Paid separately, on top of mortgage payments. This interest requires extra cash from the client and is not added to their debt.
All amounts are in Canadian dollars, rounded to cents for display only.