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§ Calculator · Housing

Mortgage paydown vs invest

What this is

If you have extra money each month, pay off the house faster or invest it?

A direct comparison. Paying off the mortgage gives a guaranteed return = mortgage rate. Investing gives a probable return that depends on the market. Higher expected return + tax-sheltered account = invest tilts the math; high mortgage rate + risk-averse personality = paydown wins.

  • ·Paydown return = mortgage rate. Guaranteed. Risk-free. ~5% in 2026 fixed-rate land.
  • ·Invest return = expected market return (usually 6-7%) in an RRSP/TFSA (tax-sheltered).
  • ·Net difference is usually small. The bigger factor is sleep: most Canadians prefer the certainty of a paid-off house.

Paydown wealth

$50,152

Invest wealth

$165,966

Payoff in (years)

18.0

Invest the cash, wins by $115,814

Educational. Not financial advice. Comparison assumes equal-amount extra payments in either direction + tax-sheltered investment account (RRSP/TFSA). Non-registered accounts erode further from cap-gains + dividend tax.

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Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.