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For Canadian Physicians

PLOC Optimizer

Prepay your mortgage or invest through your physician line of credit? See the real math with Canadian tax brackets.

Your Numbers
Mortgage balance $650,000
Mortgage rate 4.50%
PLOC balance $250,000
PLOC rate 4.20%
PLOC Purpose
PLOC interest may be tax-deductible when the borrowed funds are traceably used for eligible income-producing investments. When it applies, it reduces your effective borrowing cost. Confirm with your accountant.
Deductibility requires funds go to eligible non-registered investments — not TFSAs or RRSPs. CRA requires proper tracing. Confirm with your accountant before structuring this.
Expected investment return 7.0%
Time horizon
Estimated marginal tax rate50.0%
Presets are approximate combined federal + provincial rates for high earners. Your exact rate depends on income and year. Confirm with your accountant.
Effective PLOC cost after tax
1.95%
4.20% x (1 - 50.0%) = 2.10% real cost
If your PLOC interest qualifies as deductible (traceable, eligible investment use), your real borrowing cost drops well below the posted rate.
5-year comparison
Prepay mortgage
$0
Interest saved
Invest via PLOC
$0
Estimated net after PLOC cost
Net difference over 5 years
$0
in favour of investing
📈
Investing wins
With your tax bracket, borrowing at 1.95% effective to invest at 7% is a clear spread.
Key numbers
Break-even investment return 0%
PLOC interest cost (5yr) $0
Tax savings on PLOC interest $0
Mortgage interest saved if prepaid $0
--
Your mortgage rate grade
Grade your mortgage first to see how your rate compares to physician-specific pricing.
Grade my physician mortgage
Ready to talk

Want a specialist to run this with your real numbers?

Estimates are useful. A physician-lending specialist for your province works through your actual income structure, PLOC, stage of training, and down payment, then matches you with the right lenders. No cost, no obligation.

Schedule a call → experts@physicianfinancing.ca

You'll hear back within 24 hours from a licensed mortgage professional, not a call centre.

What you'll get
— Whether the Smith Manoeuvre makes sense for your situation
— After-tax cost of borrowing vs expected return on investment
— How your PLOC affects mortgage qualification at each lender
— Optimal structure between PLOC and mortgage

Get Your PLOC Strategy Report

Personalized PLOC optimization breakdown with real after-tax math for your situation.

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