Imagine Part of Your Mortgage Payment Coming From Dividends Instead of Your Paycheque

The mortgage is usually the biggest bill Canadians pay each month. With the right TSX dividend stocks, part of it could be paid by companies you own.

Aditya Raghunath

Aditya Raghunath joined the Motley Fool Canada team in 2019 and has close to seven years of experience in covering publicly-listed companies. With a post-graduate degree in finance, Aditya aims to educate and engage Canadians by writing extensively about growth, dividend, and value stocks. If you are considering investing in the stock market, he recommends reading The Intelligent Investor by Benjamin Graham before taking the plunge.

Published September 27, 8:00 pm EDT

Picture a young couple who just purchased a house in Toronto, Ontario. Every month, they need to have about $3,400 ready for the mortgage payment.

With rising interest rates, the mortgage payment could go up over the next 12 months. A low-cost way to offset part of these payments is to invest in quality dividend stocks that offer an attractive yield in 2026. Let’s see how this strategy works for Canadian homeowners.

concept of real estate evaluation — Source: Getty Images

Why top dividend stocks matter when the mortgage bill is big

The average Canadian mortgage payment in 2026 is roughly $2,867 a month, or about $34,400 a year, according to WealthNorth.

The estimate assumes an average home price of $652,941, a 20% down payment, a 25-year amortization, and a 4.35% five-year fixed rate. It doesn’t include property tax, insurance, or condo fees.

The national average home price in August rose 0.6% to $668,219 according to Storeys, citing the Canadian Real Estate Association (CREA).

However, a homeowner in British Columbia pays a monthly mortgage of $4,058, compared to one in New Brunswick who pays just $1,448.

How much in TSX dividend stocks does it take to cover your mortgage?

Say you invest $1,000 a month and earn about 7% a year, which includes dividends and capital gains. After about 12 years, you’d have roughly $225,000.

Assume a 4% withdrawal rate, and you can allocate $750 a month toward the mortgage, covering roughly 25% of the payment.

Here’s another simple version. At a 4% dividend yield, every $100,000 invested pays about $4,000 a year, or $333 a month.

Why Enbridge stands out among TSX dividend stocks

Enbridge (TSX: ENB) is one of the world’s largest energy infrastructure companies and offers a yield of almost 6% in 2026.

In Q2 of 2026, it increased adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) by $130 million year over year. Mainline volumes averaged 3.1 million barrels per day, and Enbridge ended Q2 with a capital backlog of $41 billion.

Its projected capital spending should expand its base of cash-generating assets, driving the dividend yield at cost higher over time. Notably, ENB stock has raised the annual dividend from $0.58 per share in 2006 to $3.88 per share today.

On the company’s Q2 earnings call, CFO Pat Murray made the dividend’s role crystal clear.

“Growing our dividend remains central to our strategy. Over the past five years, we’ve returned $38 billion to shareholders and expect to return between $40 billion to $45 billion over the next five years,” Murray said.

The Foolish takeaway

Dividends are never guaranteed and can be suspended or lowered amid economic downturns. So, it’s essential to own top dividend stocks such as Enbridge that generate stable cash flows across business cycles.

Moreover, if you hold dividend stocks in a TFSA (Tax-Free Savings Account), the quarterly dividend payouts and capital gains are exempt from Canada Revenue Agency taxes.

Homeowners need a starting point, a TFSA, and patience. A $215,000 portfolio could cover a quarter of the average payment, and every dividend raise gets them closer.