Financial Planning · Calgary, AB
Client Illustration
Prepared 02 Jun 2026
Position as of 07 May 2026
Prepared 02 Jun 2026
Position as of 07 May 2026
The Down Payment
Decision.
You put $58,000 down and financed a small CMHC premium instead of gutting your RRSP or corporation to hit 20%. Here is exactly what that choice saved you, and where the alternatives would have left you.
Your position as of 7 May 2026
Cash
$23,602
used $21,602
TFSA
$64,622
used $36,398 liquid
RRSP
$124,280
left untouched
Corporation
$72,663
left untouched
Down payment used
$58,000
cash + liquid TFSA
What the CMHC premium actually is
Purchase price$724,000
Down payment$58,000 · 8.01%
Minimum required down (this price)$47,400
Base mortgage$666,000
Loan-to-value91.99%
CMHC premium rate (90.01–95% band)4.00%
PST on premium (Alberta)$0 (none)
Total insured mortgage$692,640
One-time CMHC premium
$26,640
Added to the loan, not paid in cash. It costs about $159/month of extra mortgage payment to carry.
Three ways to have funded this purchase
✓ The route you took
Keep It Invested
8% down, finance the CMHC premium. RRSP and corporation stay fully invested and compounding.
Cash cost today$26,640
Tax triggered$0
RRSP room lost$0
Capital still compounding$196,943
Premium is financed and shrinks every year as you pay down the loan. Nothing permanent is lost.
Alternative 1
Cash The RRSP
Withdraw from the RRSP to reach 20% down and dodge the premium. The withdrawal is fully taxable as income.
Gross RRSP withdrawn$124,280
Tax triggered$44,741
RRSP room lost forever$124,280
Capital still compounding$61,318
The full RRSP barely covers the gap after tax, and the contribution room never comes back.
Alternative 2
Break The Corp
Liquidate corporate investments to fund 20%: tax is triggered inside the corp AND on the way out to you.
Corp balance available$72,663
Gap to fill at 20%$86,800
Shortfall vs. gap−$14,137
Double-tax dragCorp + personal
The corporation can't even cover the gap on its own, and draining it stops the compounding that funds your future.
Where each route leaves you
Invested capital over time
RRSP + corporation, compounding at the assumed return. The gap is permanent.
Cost to "save" the premium
What avoiding the CMHC premium actually costs today.
You financed a $26,640 premium to keep $196,943 compounding into $845,355. The alternative was paying $48,825 in tax and giving up roughly $578,000 of growth, all to save that same $26,640.
Assumptions: drag to test your own
Your stated payment
$2,018.34
accel. bi-weekly (implies ~5.05%)
Model payment (Route A)
$2,053.95
accel. bi-weekly at current inputs
Model payment (20% down)
$1,717.40
no premium, smaller loan
Payment difference
$336.55
extra you pay for Route A
Rate note: You quoted prime at 3.68%, but the prime rate today (Jun 2026) is 4.45%. Prime + 0.75% = 5.20% (the default above), which prices the payment at ~$2,054. Your $2,018.34 implies ~5.05%; slide the rate to 5.05% to match the lender's commitment exactly. The larger Route A payment isn't "lost" money: most of that extra $337 is principal you're building as equity, not interest.