Smith Manoeuvre

Smith Manoeuvere

What is the Smith Manoeuvre?

It is a financial strategy designed to convert the non tax deductible interest of a mortgage into the deductible interest debt of an investment loan. You will simultaneously pay down your mortgage while building an investment portfolio.

Who Should Use The Smith Manoeuvre?

Canadian home owners looking to pay less tax and grow their retirement savings.

Call to see if you should consider using this strategy!

How Does the Smith Manoeuvre work?

By using the tax credits generated by the investment loan to pay down the mortgage as quickly as possible then re-borrowing that principal to invest again.

How Do I Get Started?

First you can attend one of our free seminars for a no obligation presentation on the details of this program. Obviously there is way more to it than what has been described on this page.

Then, you can arrange a no obligation consultation with our Mortgage Professional and Financial Planner. It takes both of them working together to put the plan in place.

If there are no seminars in your area or scheduled in the near future, we will arrange to have a one on one no obligation presentation for you.

Mortgages in Calgary, Alberta

Mortgages can be open or closed.  These two types of mortgages are very similar except when it comes to paying off the mortgage faster than the mortgage term.

If you have an Open Mortgage you will be able to pay it off at any time during the term of your agreement without penalty. That is a great advantage if you are foreseeing such an option. There are some disadvantages to Open Mortgages and one of them is that they usually have a higher interest rate.

Closed Mortgages usually have lower interest rates but restrict the amount of the principal you can pay off early without penalty.  They may also restrict the frequency of the repayment.

There are other types of mortgages in Calgary that are explained to you in detail at the FREE consultation. Book yours now.

Why you should always consult with a professional when considering the Smith Maneouvre.

According to Fraser Smith,  (hence the name Smith Manoeuvre) using this strategy may reduce your mortgage payoff time by half and help you invest more faster.

It is a very powerful strategy using your mortgage payments but it could get tricky. You might have a run in with CRA or have issues if your house value falls.

The best way to avoid disappointment and stress is to consult with the appropriate financial professional who works together with your mortgage broker.

Call for a FREE consultation!