Mortgage & Smith Manoeuvre Calculator

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Mortgage Details

Property

Home Value iCurrent market value. Used to calculate equity and available HELOC room.

Down Payment

PERCENTAGE

CASH AMOUNT

⚠ CMHC mortgage insurance required (down payment < 20%)

Mortgage Principal

Borrowing $640,000

Mortgage Terms

Interest Rate iCanada uses semi-annual compounding per OSFI — this calculator applies the correct formula.

Rate5.50%

Amortization iTotal years to pay off. Max 25 yrs for insured mortgages. For existing mortgages, this is your remaining amortization.

Years25 yrs

Payment Frequency iMonthly = 12×/year, Semi-monthly = 24×/year, Bi-weekly = 26×/year. Accelerated bi-weekly uses monthly ÷ 2 paid 26×/year (one extra monthly payment/year).

Extra Monthly Payment iOptional prepayment each month. Goes directly to principal.

Notes

🍁 Canadian rates
Semi-annual compounding applied per OSFI. Accelerated bi-weekly typically saves 2–4 years of interest.

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Add Smith Manoeuvre Analysis Layer the investment strategy on top — see the net worth difference over time.

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Smith Manoeuvre Parameters

HELOC

HELOC Interest Rate iTypically prime + 0.50%. Paid monthly from income — this interest is tax-deductible.

Rate7.00%

HELOC Approval (LTV) iBanks typically allow HELOC up to 80% of home value minus mortgage balance. Caps how much you can draw.

LTV80%

Max HELOC room: calculating…

Investment

Risk Profile iSets the expected annual return. Conservative: bonds/balanced (~5%). Moderate: diversified equity (~7%). Aggressive: all-equity (~9%).

Diversified equity (e.g. XEQT/VEQT) — ~7% expected return

Expected Annual Return iOverride the risk profile preset. Long-run TSX average ~6–7%, S&P 500 ~9–10% (USD).

Return7.00%

Dividend Yield iEstimated annual cash yield from dividends/distributions. This model assumes dividends are reinvested, so total return = annual return + dividend yield.

Yield0.00%

Government Bond Yield i5-yr GoC bond benchmark. If your after-tax HELOC rate is below this, the SM beats even a GIC in terms of cost of borrowing.

Yield3.00%

Tax & Options

Marginal Tax Rate iYour combined federal + provincial marginal tax rate. HELOC interest is tax-deductible, so CRA refunds you this % of your annual HELOC interest cost. Ontario ~43%, Alberta ~38%, BC ~44%, Quebec ~47%. ?

SM Projection Period iHow many years to model the Smith Manoeuvre. Can extend well beyond your amortization — once the mortgage is paid off, the full HELOC (= paid-off principal) stays invested and keeps growing.

Years25 yrs

Accelerated Smith Manoeuvre Apply CRA refund as lump sum → redraw → invest

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Mortgage Results

Mortgage Paydown Over Time

Remaining balance, cumulative interest paid, and cumulative principal paid

Amortization Schedule

Year-by-year breakdown

Year	Balance	Principal Paid	Interest Paid	Total Paid	Cumulative Interest	Equity

Mortgage & Smith Manoeuvre

Mortgage Paydown Over Time

Amortization Schedule

Traditional vs. Smith Manoeuvre

Net Worth Comparison

Smith Manoeuvre Breakdown