$312,450
Estimated after-tax wealth after 20 years
Mortgage
$350K at 4% over 20yr
Investing
$500/mo at 8% return
Income
$100K salary, Ontario
Pure RRSP
#1$312,450
Pay mortgage normally. Invest extra in RRSP from day one with refund reinvestment loop.
Pure TFSA
#2$278,900
Pay mortgage normally. Invest extra in TFSA from day one. Tax-free growth.
Mortgage then RRSP
#3$245,100
Accelerate mortgage payoff. Then invest freed cash in RRSP.
Mortgage then TFSA
#4$231,800
Accelerate mortgage payoff. Then invest freed cash in TFSA.
[ Interactive Line Chart ]
4 curves showing wealth accumulation for each strategy
Dashed vertical line at mortgage payoff year (for accelerated scenarios)
Why Pure RRSP wins for you
At your income level ($100K), your marginal tax rate is 43.41%. Every $1,000 you contribute to an RRSP effectively costs you only $566 after the tax refund. With an 8% return exceeding your 4% mortgage rate, investing from day one beats accelerating your mortgage. The RRSP refund loop amplifies this advantage further.
Pure RRSP
Investments: $312,450
Home: $350,000
$662,450
Pure TFSA
Investments: $278,900
Home: $350,000
$628,900
Mortgage then RRSP
Investments: $245,100
Home: $350,000
$595,100
Mortgage then TFSA
Investments: $231,800
Home: $350,000
$581,800
Want to explore different scenarios?
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Year-by-Year Breakdown
[ expand ]How We Calculated This
[ expand ]This tool is for educational purposes only. It is not financial advice. Consult a licensed financial advisor before making investment decisions. Tax calculations use 2025 Canadian federal and provincial brackets. Actual results will vary based on market performance, tax law changes, and individual circumstances.