$
$
%
yrs
Length of your current rate contract; you renew at term end. Amortization is the full payoff horizon.
yrs
Canadian fixed rates compound semi-annually by law; variable rates compound monthly.
%
Rate changes
Simulate a variable rate moving during the term. Each change applies from that year onward.
VRM keeps the payment fixed and lets amortization flex; ARM adjusts the payment to hold the payoff date. Only matters once a rate change is added.
Balance & cost over time
Balance owed
Principal paid to date
Interest paid to date
Total paid to date
Payment breakdown: principal vs interest
Principal portion
Interest portion
Show yearly schedule
The loan
$
%
yrs
The investment
%
Entered rate is nominal; effective annual growth depends on the compounding chosen.
Account allocation
Split the borrowed amount across account types. Only the non-registered share has deductible interest; RRSP contributions earn a tax refund; TFSA growth is tax-free. Boxes auto-balance to 100%.
Non-registered
$
%
TFSA
$
%
RRSP
$
%
Tax
%
%
The rate you expect when withdrawing from an RRSP. A lower rate than today is what makes an RRSP pull ahead.
Market changes
Vary the borrowing rate and/or market return at points in the horizon.
Investment side — grows, then gets taxed on the way out
Loan side — the cost of borrowing to invest, plus the result
Wealth vs. cost of leverage
Investment value
Cumulative after-tax interest
Net benefit
Your home
$
%
The reverse mortgage
%
Fixed reverse rates compound semi-annually; variable rates compound monthly.
yrs
yrs
%
$
Deducted from the cash the client receives, and added to the loan. Roughly $1,000 to $3,000 depending on lender, plus appraisal and independent legal advice.
$
Borrowed against the home and paid straight to the existing lender at closing. Like closing costs, it is part of the loan but is not cash the client can take or invest.
$
Loan balance vs. home equity
Home value
Loan balance
Remaining equity