Mortgage vs. Investing: Endeavour Wealth Management's 2025 Playbook for Canada’s High-Earning Professionals

Why is the decision different when your T4 or T2125 has six figures

If you earn north of $200k or operate through a profitable corporation, each post tax dollar is precious. Tackling the mortgage early feels prudent, yet every extra payment also means forfeiting a tax deduction at the top bracket and the chance to compound capital in a low-cost, globally diversified portfolio. The stakes aren’t nickels and dimes; they’re hundreds of thousands over a career.

Calculate the after tax “hurdle rate” first

Paying down a 5 % mortgage delivers a risk-free, pre tax return of 5 %. But if you can shelter growth inside an RRSP or a corporation, the after-tax bar you need to clear may fall sharply:

Leverage your corporate toolbox, salary, dividends, or IPP

Incorporated professionals can choose how to pull funds. Drawing a salary creates RRSP room that multiplies the tax shield on new investments. Dividends avoid payroll taxes but forfeit RRSP space, pushing you toward TFSA or corporate investing. For mid-career doctors and lawyers, an Individual Pension Plan (IPP) often trumps both options by allowing significantly larger, fully deductible contributions that would otherwise disappear into mortgage principal.

Don’t ignore the liability side of your balance sheet

• Interest rate outlook: If renewal looms and rates could climb, accelerating payments is the safest hedge.
• Psychology: Even high earners sleep better debt-free. If market swings distract from your practice, the intangible “return on serenity” matters.
• Asset concentration: Many executives already hold outsized real estate exposure plus employer stock. Investing instead of pre paying may restore balance.

A quick decision grid for high earners

For high earners, one of the most common questions we hear is: should I focus on paying down my mortgage, or invest excess cash? The right answer depends on a few key factors. If you're facing a variable rate above 6% or your mortgage is up for renewal within the next 18 months, paying it down may offer more certainty. This approach also tends to make sense if you've already maxed out your RRSP, IPP, and TFSA, feel uneasy about carrying debt, or if your corporate cash flow is feeling tight. On the flip side, if you’ve locked in a low fixed rate (under 4%) for the next few years, still have tax-sheltered room to grow, and your corporation is holding more than $250,000 in passive capital, investing could put you further ahead especially if you’re comfortable riding out some market volatility.

The hybrid approach that we recommend most often

1. Automate: $100 $250 biweekly extra on the mortgage.
2. Shelter: Max available RRSP/IPP/TFSAs (and corporate allocations) every January.
3. Rebalance annually: As rates, income and portfolio returns evolve, tilt the mix without emotional whiplash.

This balanced path keeps your debt trajectory shrinking while your investment engine compounds no false “either/or” choice required.

Ready for a tailored roadmap?

Book a 30-minute executive strategy call with Endeavour Wealth Management. We’ll model your exact marginal tax rate, corporate structure and mortgage schedule and deliver a clear, numbers-driven action plan so your money works as hard as you do.

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This information has been prepared by Brandt Butt who is an Investment Advisor and Portfolio Manager for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor and Portfolio Manager can open accounts only in the provinces in which they are registered.

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and a business name under which iA Private Wealth Inc. operates.