Credit Payment
Record this when you make a payment to your credit account from external funds.
What you enter
| Field | Required | Description |
|---|---|---|
| Amount | Yes | Payment amount |
| Date | Yes | When the payment was applied |
What happens
Payments are applied in order:
Step 1 — Outstanding interest: If any charged interest is unpaid, the payment settles it first. The split between eligible and non-eligible interest is proportional. This is when interest transitions from "charged" to "paid" (deductible).
Step 2 — Principal: Any remainder reduces principal proportionally between deductible and non-deductible. Within deductible principal, the reduction is split pro-rata between invested principal and capitalized deductible interest. You cannot choose which portion to pay down first.
When deductible principal is reduced, the borrowed cost of your holdings decreases proportionally. When non-deductible principal is reduced, borrowed cash in your brokerage reclassifies to personal by the same amount.
Common questions
Can I pay off only the non-deductible debt? No — not on a mixed-use account. The CRA requires proportional allocation. Use a separate credit line for personal borrowing to avoid mixing.
What about Interest Capitalization? If you're paying interest by borrowing more from the same account, use the "Interest Capitalization" event instead.
Learn more
- Mixed HELOC use — the proportional repayment rule explained
- CRA rules applied — CRA paragraph 1.43 on mixed-use accounts