Tax-Deduction Investment Strategy (TDIS) Pro Wealth Calculator

Net Worth $0

Portfolio $0

PORTFOLIO VALUE

Generated investment wealth

TAX SAVINGS

Tax Refunds: $0

Interest Saved (Early Payoff): $0

MORTGAGE FREEDOM

Calculating payoff...

NET BENEFIT

Added wealth over traditional

WEALTH MULTIPLIER

0.0x

Wealth gain vs standard

Important Regulatory & Legal Notice

These projections are for educational and illustrative purposes only and do not constitute formal financial or tax advice. CRA tax deductibility requires funds to directly produce or intend to produce income. Consult a tax professional before implementing leveraged investment strategies.

Interactive Variables

Fine-tune parameters to recalculate projection trends instantly.

Property & Loans

House Value ($)

80%: $0 65%: $0

Starting Mortgage ($)

Mortgage Rate

HELOC Rate

Existing Built-Up Equity

Available Equity to Invest: $0

Rates & Accelerators

Amortization (Yrs)

Tax Rate

Portfolio Return

Payment Interval

Prepayment Accelerator

Extra Monthly ($)

Annual Lump ($)

Strategy & Rental Settings

Interest Payment Route

Tax Note: Deductibility of capitalized interest ("interest on interest") depends on loan structure and CRA guidance. Please confirm eligibility with a CPA.

Tax Refund Allocation

Cover Out-of-Pocket Interest From Dividends

Uses generated portfolio dividends to offset HELOC interest before compounding remaining dividend income into portfolio.

Rental Cash Damming

Monthly Rent ($)

Expenses ($)

Strategy Profile:

Loading strategy configurations...

Strategy Engine Dashboard

A look at compounding wealth accumulation and remaining leverage debt.

Portfolio Net Worth Mortgage

TRADITIONAL MORTGAGE PAYOFF $109,050

SMITH MANEUVER (TDIS) PAYOFF $0

Max HELOC Capacity $0

Year 1 Net Worth $0

Closing Net Worth $0

Net Worth Balance Equations

Below is the mathematical breakdown showing exactly how your final Net Worth is calculated at the end of the active mortgage term.

Traditional Mortgage Path

1. Total Assets: $0

• Home Value: $0

• Portfolios: $0.00

2. Remaining Debt (-): $0

• Remaining Mortgage: $0

Ending Net Worth: $0

Optimized Strategy

TDIS Wealth Strategy

1. Total Assets: $0

• Home Value: $0

• Investment Portfolio: $0

2. Remaining Debt (-): $0

• Remaining Mortgage: $0

• Outstanding HELOC: $0

Ending Net Worth: $0

Net Strategy Advantage

$0

How does this happen?

Instead of only paying down low-interest debt, you safely recycle equity back into a compounding asset stream that works in parallel.

Zero net increase in monthly budget.

Year / Period	Starting Mortgage	Annual Mortgage Payment	Mortgage Interest Paid	Mortgage Principal Paid	Ending Mortgage	HELOC Balance	HELOC Interest Bill	HELOC Capitalized Cost ($0 Pocket)	Remaining Funds to Invest	Tax Refund	Total Portfolio Value	Net Worth

Post-Mortgage Wealth Extension: Should You Keep the Portfolio Alive?

Mortgage is paid off, HELOC stays open and interest continues, but the client never pays it out of pocket — either it capitalizes or the portfolio funds it directly.

Post-Mortgage Extension Controls

Extension Years (0-30)

Quick Select:

HELOC Funding Method After Payoff

Capitalize Interest Option

The HELOC interest owed each period is added onto your HELOC balance up to the 65% LTV cap ($718,900). Once capped, spillover interest becomes an out-of-pocket payment.

Fund From Portfolio Option

The HELOC interest owed each period is automatically covered by withdrawing that amount from your invested portfolio. Your HELOC balance stays flat, but your portfolio grows a little slower since some of its returns are being used to pay the interest instead of compounding.

Post-Payoff Leverage Risk Warning

This projection assumes portfolio returns remain positive and sufficient to sustain ongoing HELOC interest. It does not guarantee future performance. A market downturn, portfolio underperformance, or HELOC rate increase could require the client to fund interest out-of-pocket, sell assets at a loss, or reduce the leveraged position. Continuing a leveraged HELOC strategy indefinitely increases risk exposure compared to paying it off. This is an illustrative scenario only and not a recommendation — consult a qualified financial and tax professional before extending or maintaining leverage after mortgage payoff.

Cash Out at Payoff

Ending Portfolio Value: $0

Ending HELOC Debt: $0

Home Value: $0

Final Net Worth: $0

Keep Portfolio Leveraged

Ending Portfolio Value: $0

Ending HELOC Debt: $0

Cumulative Tax Refunds Earned: $0

Final Net Worth: $0

Year	HELOC Balance	HELOC Interest	Out-of-Pocket Cost	Funding Method Used	Tax Refund	Portfolio Value	Net Worth

Year-By-Year Rate Overrides

Manually adjust HELOC, Portfolio Return, or Mortgage rates for specific years.

Year	HELOC Rate %	Portfolio Return %	Mortgage Rate %	Persist

Capital Gains Tax on Sale

See what you'd actually take home if you sold your investments in a given year, after capital gains tax.

Client's Current Annual Taxable Income (Before This Sale) ($)

This is added on top of the capital gain to calculate the real marginal tax impact using 2026 federal + Ontario brackets — a large gain can push part of it into a higher bracket than the client's regular income alone.

When do you sell? (Year)

Portfolio Value at Sale:$0

Adjusted Cost Base (What You Actually Invested):$0

Capital Gain:$0

Taxable Capital Gain (50% Inclusion Rate):$0

Capital Gains Tax Owed (Stacked on Current Income, 2026 Fed+ON Brackets) $0

Effective Tax Rate on This Gain: 0.0%

Net Proceeds After Capital Gains Tax $0

Net Cash If Also Paying Off Outstanding HELOC Balance $0

This is a simplified illustration. Calculated using 2026 federal and Ontario tax brackets, stacked on top of the entered current income. Ontario surtax is not included in this estimate. Other provinces are not yet supported. Actual Adjusted Cost Base rules (including superficial loss rules, multiple purchase lots, and dividend reinvestment plans) are more complex. Dividends may already have been taxed as income in the year received rather than as a capital gain. Consult a tax professional before making a real sale decision.

The 80% LTV & Readvancement Rule

Under Canadian regulations, the maximum combined loan-to-value limit cannot exceed 80% of property value. HELOC borrowing is strictly capped at 65% of the home value.

Maximum Borrowing Capacity (80% LTV):$0

Initial Readvancement Room:$0

CRA Tax Deductibility Rule

The Canada Revenue Agency (CRA) dictates that borrowing interest is only tax-deductible when the funds are used with a "reasonable expectation of generating income".

Compliance Checklist

Non-registered account used

Canadian Mortgage Compounding Rule

Unlike mortgages in the United States which compound monthly, Canadian mortgages are legally required to compound semi-annually.

Bi-weekly: (1 + Rate/2)^2/26 - 1

Monthly: (1 + Rate/2)^2/12 - 1

Conservative Property Value Assumption

This calculator assumes a 0% home price appreciation rate. In real-world layouts, if your house value jumps, your limits organically rise cleanly as well.

Initial House Asset Value:$1,106,000

Tax Refund & Portfolio Growth

Each year, the tax refund generated from your HELOC interest deduction is automatically reinvested to supercharge your compound progression stream.

Assumed Portfolio Growth Rate:7.5%

Flat-Line Interest & Return Assumption

This model assumes that rates and market return vectors remain static throughout. In reality, metrics fluctuate across economic cycles.

Calculations are illustrative and not guaranteed returns.

Important Legal & Regulatory Disclosure

1. Not Financial Advice: This calculator is for educational and illustrative purposes only. It does not constitute financial, investment, or tax advice.

2. Tax Deductibility: Per CRA rules, interest is only tax-deductible if funds are used with a "reasonable expectation of generating income" (e.g., dividends or rental income). Capital gains alone do not qualify. You are solely responsible for maintaining records to prove income-producing intent.

3. Capitalized Interest: Tax deductibility of capitalized interest ("interest on interest") depends on the precise borrowing structure used. Consult a CPA to ensure compliance.

4. No Guarantees: All investment strategies involve inherent risks. Past performance or projections do not guarantee future results. Leverage (borrowing to invest) can amplify losses as well as gains.

5. FSRA Compliance: Calculations correspond to numbers supplied. Please consult with a qualified tax professional or financial advisor before implementing complex debt-leverage strategies.

6. Setup and Professional Service Costs: Although setting up and running this strategy through your readvanceable mortgage structure is designed to function with zero direct incremental costs, utilizing the services of independent financial professionals (e.g., specialized accountants, corporate tax experts, or certified financial planners) to establish, review, or file documents will incur professional service fees.

CRA Compliance & Account Setup Guide

The CRA's core rule for deductible interest is strict use-of-funds tracing (Income Tax Folio S3-F6-C1). Follow this structure carefully to preserve deductibility.

Keep Funds Separate

Never co-mingle borrowed (HELOC) funds with personal/other funds in the same account. Maintain a dedicated, separate chequing or investment account that ONLY ever receives HELOC-borrowed funds and ONLY ever pays for investments — no personal expenses, no rental deposits, no other transactions should ever pass through it. Co-mingling breaks the CRA's ability to trace borrowed funds to an income-producing use, which can invalidate the interest deduction entirely.

Where NOT to Invest Borrowed Funds

Never invest HELOC-borrowed funds inside a registered account (TFSA, RRSP, FHSA, RESP). Interest on money borrowed to invest in a registered account is NEVER tax-deductible, regardless of the investment's income potential, because registered accounts are not taxable — there is no taxable income for the interest to be traced against.

Watch for Return of Capital (ROC)

Some investments (especially certain mutual funds, REITs, and ETFs) distribute Return of Capital rather than genuine income (dividends, interest, or realized gains). ROC is not considered income for CRA deductibility purposes — if a significant portion of an investment's distributions are ROC, the interest deduction on funds used to buy that investment may be challenged. Clients should review a fund's distribution breakdown (available in its annual tax slip or fund fact sheet) before relying on it as the "income-producing" security for this strategy.

This section is educational only and does not replace advice from a qualified CPA or tax professional familiar with your specific situation. Proper account structuring should be set up and reviewed with a professional before implementing this strategy.

MORTGAGE ARCHITECTS

QUESTIONS ABOUT THESE RESULTS?

ANKIT THAKOR

Mortgage Agent – Level 1 · Mortgage Architects · FSRA # 12728

Verify FSRA License (#12728) via Public Search

"Right Mortgage, Right Move."

Direct Line+1 365 336 7344

Email Address[email protected]

Unlock Your TDIS Pro Wealth Projections

Tax-Deduction Investment Strategy (TDIS) Pro

Interactive Variables

Property & Loans

Rates & Accelerators

Strategy & Rental Settings

Strategy Engine Dashboard

Net Worth Balance Equations

$0

Comprehensive Amortization Schedule

Post-Mortgage Wealth Extension: Should You Keep the Portfolio Alive?

Post-Mortgage Extension Controls

Year-By-Year Rate Overrides

Capital Gains Tax on Sale

The 80% LTV & Readvancement Rule

CRA Tax Deductibility Rule

Canadian Mortgage Compounding Rule

Conservative Property Value Assumption

Tax Refund & Portfolio Growth

Flat-Line Interest & Return Assumption

Important Legal & Regulatory Disclosure

CRA Compliance & Account Setup Guide

Keep Funds Separate

Watch for Return of Capital (ROC)

ANKIT THAKOR

Unlock Your TDIS Pro Wealth Projections

Interactive Variables

Property & Loans

Rates & Accelerators

Strategy & Rental Settings

Strategy Engine Dashboard

Net Worth Balance Equations

$0

Comprehensive Amortization Schedule

Post-Mortgage Wealth Extension: Should You Keep the Portfolio Alive?

Post-Mortgage Extension Controls

Year-By-Year Rate Overrides

Capital Gains Tax on Sale

The 80% LTV & Readvancement Rule

CRA Tax Deductibility Rule

Canadian Mortgage Compounding Rule

Conservative Property Value Assumption

Tax Refund & Portfolio Growth

Flat-Line Interest & Return Assumption

Important Legal & Regulatory Disclosure

CRA Compliance & Account Setup Guide

Keep Funds Separate

Watch for Return of Capital (ROC)

ANKIT THAKOR

Revise Strategy Portfolio

Strategy Report Overview

TDIS Wealth Projection

What This Means For You

1. Your Strategy Parameters

2. Projected Wealth Outcomes

3. Final Net Worth Equation

Traditional Path

TDIS Strategy

4. Key Milestones

5. 5-Year Wealth Progression

ANKIT THAKOR

Important Legal & Regulatory Disclosure