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
Interest on investment-purpose PLOCs is tax-deductible. This dramatically reduces your effective borrowing cost.
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
Marginal tax rate
Effective PLOC cost after tax
1.95%
4.20% x (1 - 53.53%) = 1.95% real cost
Because PLOC interest for investments is tax-deductible, your real borrowing cost is nearly half 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
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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 Jeff to run this with your real numbers?

Estimates are useful. Jeff works through your actual income structure, PLOC, stage of training, and down payment — then matches you with the right lenders. No cost, no obligation.

Get my free analysis → experts@physicianfinancing.ca

You'll hear back within 24 hours. Jeff is a licensed mortgage agent — 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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