GIC vs. Mortgage Prepayment Calculator
Compare putting a lump sum or bigger payments into a GIC or HISA against paying down your mortgage, after tax, over your remaining term.
Your Mortgage
Estimated $2,443: enter yours for precision
The two options are compared as of your term-end date.
Money to Prepay or Invest
Enter the penalty-free annual lump-sum amount shown in your mortgage agreement. No lump-sum warning is checked until you do, because AdvaEqs doesn't know your lender's actual allowance.
The payment-increase limit is a percent of your regular payment, often around 15 to 20% with most lenders. Going over either limit triggers a warning, not a block.
The GIC or HISA Option
A GIC would need to pay more than 4.85% to beat prepaying at your 4.79% mortgage rate.
- Mortgage interest saved by prepaying
- $3,815
- GIC interest
- $3,447
- Mortgage balance at the date (prepay)
- $337,891
- Mortgage balance at the date (save)
- $366,705
- Amortization shortened
- 2 years, 3 months
- GIC value at the date
- $28,447
Important assumptions
- These options aren't equally liquid: money prepaid on the mortgage can't be taken back without re-borrowing, while a GIC returns your principal at maturity and a HISA stays accessible.
- Mortgage rate4.79% (fixed)
- Mortgage payment$2,443 / monthly
- Comparison horizon3 years
- GIC rate4.40% · 3 years term
- Account typeTFSA (tax-free)
- GIC interest basisCompounds annually (paid at maturity)
- When a GIC matures before the horizonn/a: the GIC matures on or after the comparison date
- Prepay: mortgage balance at horizon$337,891
- Save: mortgage balance at horizon$366,705
- Save: deposit value at horizon$28,447
- Prepaying is ahead by$367
- Break-even deposit rate4.85%
Confidence: deterministic. Rules current as of 2026-08-01.
Disclaimer: Calculations are estimates only and are not financial, tax, or mortgage advice. The comparison assumes rates stay constant. When a GIC matures before the comparison date, the calculator assumes its proceeds are reinvested at the same rate unless you choose to hold them as cash. Your actual return, tax situation, prepayment privileges, and mortgage terms will differ. GIC and HISA rates shown by AdvaEqs may have eligibility requirements. Always confirm the details with your financial institution and, where tax matters, a qualified advisor.