Even · SundayPyjamas Impact Foundation
Understand what's ahead. Then design for it.
Long-term planning, tax-honest math, and the trade-offs that actually matter — free, private, and sourced.
Understand what's ahead
Honest numbers
Most calculators plan on pretax income. Even computes after-tax surplus, then orders FHSA, RRSP, and TFSA by your marginal rate.
2026 contribution room
Your planned RRSP contributions (~$26,909/yr) exceed estimated room (~$20,929) by ~$5,980. Cap contributions or verify room in CRA My Account.
TFSA room left
$104,000 · $7,000 new in 2026
RRSP room left
$20,929 · cap $33,810 / 18% earned
See the trade-offs
No single best path
Mortgage vs invest, salary vs dividend, RRSP vs TFSA — each choice buys something and costs something else. Even shows both sides, then asks: …and then what?
- Prepaying earns a guaranteed 4.50% (tax-free); investing offers a risk-adjusted 3.90% that is NOT guaranteed.
- Investing here uses registered room (no tax drag), but that room, once used on lower-conviction dollars, is gone for future higher-value contributions.
- Liquidity: money invested can be sold if you lose your job; money sunk into the house is locked behind a HELOC application or a sale.
- And then what? Prepaying clears the mortgage 14.7 years sooner and frees the monthly payment forever — but you spent those years house-rich and cash-poor, holding little liquid wealth while markets (may have) compounded without you.
| Strategy | Net worth (horizon) | Real | Interest paid | Mortgage-free | Liquidity |
|---|---|---|---|---|---|
| Invest firsthighest net worth | $3,180,503 | $1,900,603 | $325,042 | Year 26 | 87% |
| Balanced split | $3,052,943 | $1,824,375 | $121,319 | Year 11 | 86% |
| Goal-gated | $3,034,540 | $1,813,378 | $325,042 | Year 26 | 86% |
| Mortgage first, then invest | $3,012,894 | $1,800,443 | $75,488 | Year 7 | 86% |
- Maximises time in the market (100% of contributions ride the market), but leaves the mortgage in place, paying interest the whole way.
- And then what? You build a large liquid portfolio (87% of wealth stays liquid) but a market drawdown near your horizon hits the full balance while the mortgage still demands its payment.
- Note: prepayment beyond the lender's annual privilege would trigger a penalty; any excess here was redirected to investing.
- Hedges the guaranteed-vs-risky bet 50/50 — neither the fastest payoff nor the biggest portfolio.
- And then what? You are never wildly wrong, but never optimal either; you pay more interest than "mortgage first" and hold less market upside than "invest first".
- Note: prepayment beyond the lender's annual privilege would trigger a penalty; any excess here was redirected to investing.
- Keeps a near-term goal fully funded and liquid first (86% of wealth stays liquid), accepting taxable tax drag of $73,922 for that safety.
- And then what? The goal is safe, but the years spent in low-growth cash/taxable are years of registered-account compounding and shelter room you forgo.
- Note: prepayment beyond the lender's annual privilege would trigger a penalty; any excess here was redirected to investing.
- Mortgage gone by year 7: interest paid drops to $75,488, a guaranteed return — but 83% of contributions ride the market, so early growth is modest.
- And then what? Once free, the whole payment flows into investing — but you spent the early years house-rich and cash-poor (86% of wealth stays liquid), missing compounding you can't get back.
Use leverage on purpose
Corporation as a wealth lever
The small-business rate is deferral and leverage — not free money. Model SBD grind and salary vs dividend with the trade-offs made explicit.
| Strategy | Salary | Dividends | RRSP room | Total tax | Net to you |
|---|---|---|---|---|---|
| Non-eligible dividends onlylowest tax | $0 | $72,442 | — | $16,508 | $66,000 |
| Salary = CPP ceiling (YMPE 74,600), rest dividends | $74,600 | $11,918 | $13,428 | $22,174 | $66,000 |
| Salary only | $88,697 | $0 | $15,965 | $22,697 | $66,000 |
| Salary to max RRSP room, rest dividends | $88,697 | $0 | $15,965 | $22,697 | $66,000 |
- Creates $0 RRSP room and pays $0 into CPP — no forced retirement savings, so you must self-fund it.
- Skips CPP premiums entirely, which raises take-home now but lowers your future CPP pension.
- Simplest to administer (no payroll), but the corp bore small-business tax before you were paid.
- Salary set to the CPP ceiling maximises the CPP pension you buy without over-paying salary tax.
- Still creates $13,428 of RRSP room; the rest arrives as lower-tax dividends.
- Retains ~$181,616 of deferred personal tax inside the corp.
- Pays full CPP up to the ceiling — forced savings some owners prefer to avoid.
- Creates the most RRSP room ($15,965) — but only if you actually invest the refund.
- Forces $4,646 of CPP: a guaranteed inflation-indexed pension, yet also a cost you cannot get back.
- No corporate tax deferral: every dollar is pulled out and taxed personally this year.
- Salary maxes RRSP room ($15,965) while dividends top up cash flow with no extra CPP.
- Balances forced CPP savings against flexibility — you still owe CPP on the salary portion.
- Leaves ~$187,996 of deferred personal tax working inside the corp.
- More admin than salary-only (payroll + T5), for a blended tax outcome.
Educational modelling only — not tax advice. Corporate tax, TOSI (income-splitting rules), and RDTOH are complex; confirm any strategy with your accountant.
Citation-first
Every number has a source
Tax rates, contribution limits, and assumptions link to the CRA, Service Canada, or provincial pages that publish them.
Federal income tax brackets, rates, and Basic Personal Amount (2026)
Canada Revenue Agency
Tax year 2026
Ontario income tax brackets, surtax, and Basic Personal Amount (2026)
Government of Ontario / Canada Revenue Agency
Tax year 2026
RRSP dollar limits by year (18% of prior-year earned income, capped)
Canada Revenue Agency
Tax year 2026
TFSA annual dollar limits by year (unused room carries forward)
Canada Revenue Agency
Tax year 2026
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Estimates only — not financial advice. Based on 2026 CRA / Service Canada rules.