Cash flow, cap rate, tax impact, and qualification math. With the PLOC strategy that changes everything for physicians.
Property & Financing
$600K
$2,500
20% minimum for investment properties
4.79%
Rental rates typically 0.25-0.50% above owner-occupied
48%
Most physicians: 43-53% depending on province and income
5%
3.0%
0% (self)
Monthly Cash Flow
--
before tax
Cap Rate
--
NOI / Price
Cash-on-Cash
--
annual return on cash invested
5-Year Total Return
--
cash flow + equity + appreciation
PLOC Strategy Breakdown
Your PLOC interest is tax-deductible because the borrowed funds go directly to purchasing an income-producing property (CRA S3-F6-C1).
PLOC Interest
--
annual, pre-tax
After-Tax Cost
--
--
Counts as Debt
--
banks count 3% of balance as a monthly payment
Down payment source rules vary by lender. Many accept HELOC equity from your primary residence. Some accept PLOC funds. Confirm eligibility with your mortgage professional before relying on this strategy.
Banks cap your total monthly debt payments at 44% of gross income. Here's how much of that room this rental property uses up.
Your debt room:--/mo for all debt payments
This rental uses:--/mo
Debt room used by this rental--%
How we calculate this: Banks stress-test the rental mortgage at the higher of your rate + 2% or 5.25%. They only count 50% of the rent as income to offset the new debt. If you're borrowing the down payment from your PLOC, 3% of that balance also counts as a monthly payment.
Important Notes
This calculator provides estimates for educational purposes only. It is not financial, tax, or investment advice.
Down payment source rules vary by lender. Not all lenders accept borrowed funds for investment property down payments. Confirm with your mortgage professional.
Interest deductibility requires proper tracing of borrowed funds to an income-producing purpose (CRA Income Tax Folio S3-F6-C1). Consult a tax advisor.
CCA (Capital Cost Allowance) is excluded from this calculator. CCA can reduce current taxes but gets recaptured at full income tax rates on sale. Discuss with your CPA.
Rental income qualification (50% add-back) is the industry standard. Actual treatment varies by lender.
Capital gains taxed at 50% inclusion rate (current Canadian law). Tax laws can change.
Vacancy rates, property taxes, and appreciation assumptions are estimates. Actual results will vary.
Questions about physician real estate investing?
Every situation is different. Reach out and we'll walk through the numbers together.
Estimates are useful. Jeff works through your actual income structure, PLOC, stage of training, and down payment — then matches you with the right lenders. No cost, no obligation.