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Visualizing the Strategy

How the flow of your money changes based on your $400,000 total mortgage.

The Traditional Setup

1. Your Income

$8,000 deposited monthly.

⬇️

2. Standard Checking Account

Your cash sits here earning 0% interest while waiting to pay bills.

↙️↘️

Living Expenses

~$2,866 spent on living costs.

3. Traditional Mortgage

Interest is calculated continuously on your full $400,000 debt.

The Mathematical Flaw

  • Your money is segregated. Your cash earns nothing in checking, while your debt compounds heavily on the other side.
  • You only get "credit" for your income once a month when you make your fixed mortgage payment.
  • Any extra cash left in checking at the end of the month does nothing to reduce your daily mortgage interest.

The Split AIO Setup

1. Your Income

$8,000 deposited monthly.

⬇️

2. AIO Revolving Checking

Your bank account IS your mortgage. Income instantly drops your $200,000 revolving debt.

↙️↘️

Living Expenses

As you spend ~$2,866 throughout the month, the balance climbs back up.

3. Locked Sub-Account

$200,000 locked at a fixed rate. The ~$1,107 payment is auto-deducted from your AIO.

The Mathematical Advantage

  • The Daily Sweep: Interest is calculated at 11:59 PM. Because your income suppresses the debt immediately, you pay interest on a smaller number all month.
  • Idle Money Works: By the end of the month, your unspent cash flow permanently kills off pure principal.
  • The Safety Lock: By locking a portion of the debt (Step 3), you protect yourself from variable rate spikes.

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