{"id":14029,"date":"2026-01-22T12:14:10","date_gmt":"2026-01-22T17:14:10","guid":{"rendered":"https:\/\/wellington-altus.ca\/?p=14029"},"modified":"2026-01-22T12:52:27","modified_gmt":"2026-01-22T17:52:27","slug":"deadline-reminder-2025-prescribed-rate-loan-interest-payment","status":"publish","type":"post","link":"https:\/\/wellington-altus.ca\/fr\/deadline-reminder-2025-prescribed-rate-loan-interest-payment\/","title":{"rendered":"Deadline Reminder: 2025 Prescribed Rate Loan Interest Payment"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"14029\" class=\"elementor elementor-14029\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-647870b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"647870b\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b210e68\" data-id=\"b210e68\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-04e6bbe elementor-widget elementor-widget-text-editor\" data-id=\"04e6bbe\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/wellington-altus.ca\/wp-content\/uploads\/2026\/01\/AWPG_Prescribed_Rate_Loans_01_2026_Final_EN.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">En savoir plus ici.<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-61e8729 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"61e8729\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-30c5362\" data-id=\"30c5362\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7fd0710 elementor-widget elementor-widget-text-editor\" data-id=\"7fd0710\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Clients who have implemented a prescribed rate loan should be reminded to pay the appropriate interest relating to the 2025 year <strong>on or before January 30, 2026<\/strong>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-70faabb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"70faabb\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2ce6f7f\" data-id=\"2ce6f7f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fbba1c0 elementor-widget elementor-widget-text-editor\" data-id=\"fbba1c0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-size: 12pt;\"><strong>Qu\u2019est-ce qu\u2019un pr\u00eat \u00e0 taux prescrit?<\/strong><\/span><\/p><p>A prescribed rate loan is one of the few income-splitting opportunities provided to Canadians that does not violate the various \u201cattribution rules\u201d found in Canada\u2019s Income Tax Act. These \u201cattribution rules\u201d are designed to prevent high-tax bracket individuals from shifting investment income to a lower-tax bracket individual\u2019s hands.<\/p><p>A prescribed rate loan strategy allows Canadians to legitimately place income and gains earned from the invested loan proceeds in the hands of their spouse, common-law partner, or an inter-vivos trust with beneficiaries that are taxed at lower marginal tax rates. When structured properly, the family unit will pay less income tax on a combined basis on such income and gains.<\/p><p><strong>Quand les int\u00e9r\u00eats sont-ils dus?<\/strong><\/p><p>For the prescribed rate loan planning to be valid, one requirement is that the loaned funds charge an interest rate that is at least equal to the Canada Revenue Agency\u2019s (CRA) prescribed rate at the time that the loan is made. The CRA prescribed rate is published each quarter and is based on the Government of Canada three-month T-bill rate.<\/p><div style=\"width: 100%; overflow-x: auto;\"><table><tbody><tr><td colspan=\"4\" width=\"342\"><strong>Historical<\/strong> <strong>Interest Rates For Prescribed Rate Loans<\/strong><\/td><\/tr><tr><td width=\"76\">\u00a0<\/td><td width=\"91\"><strong>2025<\/strong><\/td><td width=\"89\"><strong>2024<\/strong><\/td><td width=\"85\"><strong>2023<\/strong><\/td><\/tr><tr><td width=\"76\"><strong>Q1<\/strong><\/td><td width=\"91\">4%<\/td><td width=\"89\">6%<\/td><td width=\"85\">4%<\/td><\/tr><tr><td width=\"76\"><strong>Q2<\/strong><\/td><td width=\"91\">4%<\/td><td width=\"89\">6%<\/td><td width=\"85\">5%<\/td><\/tr><tr><td width=\"76\"><strong>Q3<\/strong><\/td><td width=\"91\">3%<\/td><td width=\"89\">5%<\/td><td width=\"85\">5%<\/td><\/tr><tr><td width=\"76\"><strong>Q4<\/strong><\/td><td width=\"91\">3%<\/td><td width=\"89\">5%<\/td><td width=\"85\">5%<\/td><\/tr><\/tbody><\/table><\/div><p>Interest on a prescribed rate loan must be <em>\u201cpaid not later than 30 days after the end of the particular year\u201d<\/em>. As <em>\u201cparticular year\u201d <\/em>in most instances refers to a calendar year, the year-end is December 31.<\/p><p>To ensure that any outstanding prescribed rate loans remain valid, the borrower must ensure that the required interest is paid to the lender on or before January 30 of the following year.<\/p><p>Les int\u00e9r\u00eats doivent \u00eatre pay\u00e9s m\u00eame si le pr\u00eat \u00e0 taux prescrit a \u00e9t\u00e9 accord\u00e9 au cours de l\u2019ann\u00e9e ou si des fonds suppl\u00e9mentaires ont \u00e9t\u00e9 pr\u00eat\u00e9s ou rembours\u00e9s. Lorsque le solde du pr\u00eat a chang\u00e9 au cours de l\u2019ann\u00e9e (p. ex., un paiement de capital a \u00e9t\u00e9 effectu\u00e9), les int\u00e9r\u00eats \u00e0 payer doivent \u00eatre calcul\u00e9s au prorata en fonction du nombre de jours dans l\u2019ann\u00e9e o\u00f9 chaque solde diff\u00e9rent restait impay\u00e9.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6c4440e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6c4440e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-799cc29\" data-id=\"799cc29\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b10ed14 elementor-widget elementor-widget-text-editor\" data-id=\"b10ed14\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Par exemple:<\/strong><\/p>\n<ol>\n<li>A $100,000 prescribed rate loan at 3% interest was established on December 1, 2025. The accrued interest for the period December 1-31 must be calculated and paid no later than January 30, 2026.<\/li>\n<\/ol>\n<ol start=\"2\">\n<li>A $2 million prescribed rate loan at 3% interest was set up on July 1, 2025, half the loan principal ($1 million) was repaid on December 15, 2025. Interest for 2025 will be calculated as 3% on $2 million (July 1- December 14) plus 3% on $1 million (December 15-31). Interest must be paid no later than January 30, 2026.<\/li>\n<\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4278e62 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4278e62\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-063c290\" data-id=\"063c290\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-71ee296 elementor-widget elementor-widget-text-editor\" data-id=\"71ee296\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><strong>Comment les int\u00e9r\u00eats doivent-ils \u00eatre pay\u00e9s?<\/strong><\/p><p>It is best practice for the borrower to pay the required interest from their own separate account. Using joint chequing or joint investment accounts to make the interest payments should be avoided. Where a prescribed rate loan is in place between spouses or common-law partners, the borrower often pays the interest from their investment account to the lender\u2019s investment account.<\/p><p>Interest payments should also be documented to provide support should the CRA request evidence of these interest payments. As with other supporting tax information, it is generally recommended to retain this documentation for a period of at least six years.<\/p><p><strong>Que se passe-t-il si les int\u00e9r\u00eats ne sont pas pay\u00e9s?<\/strong><br \/>If the interest is not paid on time, then the \u201cattribution rules\u201d will apply and the tax benefits of the prescribed rate loan strategy will be lost, and the loan will be considered \u201ctainted\u201d.<\/p><p>While a new prescribed rate loan can be established to regain the tax benefits, there are several negative outcomes that can arise if a new prescribed rate loan is required because of the interest payment not being made on time.<\/p><ul><li><strong>Professional Fees<\/strong><br \/>Establishing a prescribed rate loan generally comes with professional fees. For example, a lawyer is commonly engaged to draft a loan agreement to document the new prescribed rate loan. Additionally, professional fees from accountants and\/or tax advisors may also be required.<\/li><li><strong>Lost Access to Lower Interest Rates<\/strong><br \/>Though the prescribed rate has been falling in recent quarters, these rates began to rise sharply in mid-2022, reaching a peak of 6.00%. Given the interest rate is \u201clocked in\u201d at the time a prescribed rate loan is established, missing an interest payment will taint a prescribed rate loan that has been established at a lower interest rate (many have been established as low as 1.00%). As such, missing an interest payment may result in the new prescribed rate loan being established at a higher prescribed rate of interest. This is not ideal as the lower the prescribed rate attached to the loan, the greater the tax benefits for the family unit.<\/li><li><strong>Liquidation of Portfolio<\/strong><br \/>Where the prescribed rate loan was used by the borrower to purchase marketable securities, it is generally best practice to liquidate the portfolio to settle the now \u201ctainted\u201d prescribed rate loan before establishing the new prescribed rate loan structure and investing the new loan proceeds. This can lead to various unintended consequences such as the \u201csuperficial loss rules\u201d if the original investments are disposed of at a loss and are subsequently repurchased within certain timeframes.<\/li><\/ul><p>\u00a0<\/p><p><strong>Remarque: <\/strong>professional tax advice should be obtained if a prescribed rate loan falls offside due to a missed interest payment.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1553874 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1553874\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-370b1ff\" data-id=\"370b1ff\" data-element_type=\"column\" data-e-type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6adc252 elementor-widget elementor-widget-text-editor\" data-id=\"6adc252\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>To facilitate payment of interest on your prescribed rate loans or to understand how this strategy may be a beneficial tax mitigation strategy for you and your family, contact your Wellington-Altus advisor.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Qu\u2019est-ce qu\u2019un pr\u00eat \u00e0 taux prescrit?<\/p>\n<p>A prescribed rate loan is one of the few income-splitting opportunities provided to Canadians that does not violate the various \u201cattribution rules\u201d found in Canada\u2019s Income Tax Act. These \u201cattribution rules\u201d are designed to prevent high-tax bracket individuals from shifting investment income to a lower-tax bracket individual\u2019s hands.<\/p>","protected":false},"author":19,"featured_media":4038,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60],"tags":[79],"class_list":["post-14029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth-planning","tag-english"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Deadline Reminder: 2025 Prescribed Rate Loan Interest Payment - Wellington-Altus<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wellington-altus.ca\/fr\/deadline-reminder-2025-prescribed-rate-loan-interest-payment\/\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Deadline Reminder: 2025 Prescribed Rate Loan Interest Payment - Wellington-Altus\" \/>\n<meta property=\"og:description\" content=\"What is a prescribed rate loan? A prescribed rate loan is one of the few income-splitting opportunities provided to Canadians that does not violate the various \u201cattribution rules\u201d found in Canada\u2019s Income Tax Act. These \u201cattribution rules\u201d are designed to prevent high-tax bracket individuals from shifting investment income to a lower-tax bracket individual\u2019s hands.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/wellington-altus.ca\/fr\/deadline-reminder-2025-prescribed-rate-loan-interest-payment\/\" \/>\n<meta property=\"og:site_name\" content=\"Wellington-Altus\" \/>\n<meta property=\"article:published_time\" content=\"2026-01-22T17:14:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-22T17:52:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/wellington-altus.ca\/wp-content\/uploads\/2021\/10\/WA-Featured-Image.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Akeem Foster\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u00c9crit par\" \/>\n\t<meta name=\"twitter:data1\" content=\"Akeem Foster\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimation du temps de lecture\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/wellington-altus.ca\/deadline-reminder-2025-prescribed-rate-loan-interest-payment\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/wellington-altus.ca\/deadline-reminder-2025-prescribed-rate-loan-interest-payment\/\"},\"author\":{\"name\":\"Akeem Foster\",\"@id\":\"https:\/\/wellington-altus.ca\/#\/schema\/person\/1068fb4c7767dfcd8e6421a9669f96f6\"},\"headline\":\"Deadline Reminder: 2025 Prescribed Rate Loan Interest Payment\",\"datePublished\":\"2026-01-22T17:14:10+00:00\",\"dateModified\":\"2026-01-22T17:52:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/wellington-altus.ca\/deadline-reminder-2025-prescribed-rate-loan-interest-payment\/\"},\"wordCount\":909,\"publisher\":{\"@id\":\"https:\/\/wellington-altus.ca\/#organization\"},\"image\":{\"@id\":\"https:\/\/wellington-altus.ca\/deadline-reminder-2025-prescribed-rate-loan-interest-payment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/wellington-altus.ca\/wp-content\/uploads\/2021\/10\/WA-Featured-Image.png\",\"keywords\":[\"English\"],\"articleSection\":[\"Wealth Planning\"],\"inLanguage\":\"fr-CA\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/wellington-altus.ca\/deadline-reminder-2025-prescribed-rate-loan-interest-payment\/\",\"url\":\"https:\/\/wellington-altus.ca\/deadline-reminder-2025-prescribed-rate-loan-interest-payment\/\",\"name\":\"Deadline Reminder: 2025 Prescribed Rate Loan Interest Payment - 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A prescribed rate loan is one of the few income-splitting opportunities provided to Canadians that does not violate the various \u201cattribution rules\u201d found in Canada\u2019s Income Tax Act. 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