Rental Cash Damming Calculator
See how redirecting rental income to prepay your mortgage — funded by a tax-deductible HELOC — could change your payoff timeline.
① Rent comes in
Every dollar of rental income prepays your primary mortgage.
② HELOC pays the rental's bills
Rental expenses and the rental mortgage payment are paid from a HELOC.
③ Interest becomes deductible
HELOC funds were used to earn rental income, so its interest is tax-deductible → CRA refund.
④ Mortgage dies early, then attack the HELOC
Once the primary mortgage is gone (years early), the old payment + rent aggressively pays the HELOC.