See how the strategy could change your timeline.
Compare a standard principal-and-interest mortgage with a scenario where the net quarterly investment return is paid directly into the mortgage.
Projected mortgage balance over time
| Year | Standard balance | Mortgage Zero balance | Net quarterly payment |
|---|---|---|---|
| 0 | $400,000 | $400,000 | $7,900 |
| 1 | $392,985 | $360,652 | $7,900 |
| 2 | $385,531 | $318,835 | $7,900 |
| 3 | $377,609 | $274,394 | $7,900 |
| 4 | $369,190 | $227,166 | $7,900 |
| 5 | $360,242 | $176,975 | $7,900 |
| 6 | $350,733 | $123,635 | $7,900 |
| 7 | $340,628 | $66,949 | $7,900 |
| 8 | $329,889 | $6,706 | $7,900 |
| 9 | $318,476 | $0 | $7,900 |
| 10 | $306,347 | $0 | $7,900 |
| 11 | $293,457 | $0 | $7,900 |
| 12 | $279,759 | $0 | $7,900 |
| 13 | $265,201 | $0 | $7,900 |
| 14 | $249,730 | $0 | $7,900 |
| 15 | $233,289 | $0 | $7,900 |
| 16 | $215,815 | $0 | $7,900 |
| 17 | $197,246 | $0 | $7,900 |
| 18 | $177,512 | $0 | $7,900 |
| 19 | $156,540 | $0 | $7,900 |
| 20 | $134,252 | $0 | $7,900 |
| 21 | $110,566 | $0 | $7,900 |
| 22 | $85,394 | $0 | $7,900 |
| 23 | $58,642 | $0 | $7,900 |
| 24 | $30,213 | $0 | $7,900 |
| 25 | $0 | $0 | $7,900 |
Important modelling limitations
This calculator is an illustration, not a prediction or personal recommendation. A 14% return is an input supplied for review and is not guaranteed. Investment values and income may fall, distributions may be delayed or unavailable, and borrowing costs may rise.
The calculation excludes investment fees, establishment costs, advice fees, tax, deductibility, changes in interest rates, product liquidity, capital losses and repayment of the investment loan principal. Those items may materially reduce or reverse the illustrated benefit.
Paying off the home mortgage does not repay the separate investment loan in this model. Obtain appropriate licensed financial, credit, tax and legal advice and review all product disclosure documents before acting.