Is your Mortgage Tax Deductible?

Debt is pretty much a given for most Canadians.

But do you have the wrong kind of debt? Let me introduce you to the Smith Manoeuvre, a unique and proven financial strategy that simultaneously converts mortgage interest to tax refunds, shortens the amortization period of your mortgage, and builds a free-and clear portfolio of investments of your choosing, to fund the future for your family!  I am an accredited Smith Manoeuvre professional AND mortgage expert!  I can help you convert your bad debt into good debt! 

Are You Investing Enough, Soon Enough?

With the high cost of living, its tough to put additional money away for your retirement on a monthly basis.   In retirement, the average CPP and OAS income combined is around $1300 per month.   Could you retire comfortably on that income especially with Canadians living longer?   Most people can’t and wind up applying for a mortgage just so they can pay their everyday expenses instead of enjoying their golden years living debt free.   They basically end up back where they started.   There is a better way, how would you like to be able to put an additional $750 per month into investments for your future? Maybe $1,000 per month? More?

Is Your Mortgage Bleeding You Dry?

A $500,000 mortgage at 4.0% over 25 years will set you back about $289,000 in interest costs.

So, that $500,000 will end up costing you over $789,000. And that’s after-tax income, which means you’ll have to earn about $1,127,000 to pay off your home if you’re in the 30% tax bracket. No wonder it’s challenging to save for the future!But…If you make your mortgage tax-deductible using The Smith Manoeuvre, you will recover a good chunk of that interest in the form of yearly tax refunds. You’ll also be able to pay it off much sooner than expected. Isn’t this exciting?

Let’s See an Example!

Meet Andrew. Andrew has a 25-year mortgage, a 2.8% mortgage rate, a 2.95% line of credit borrowing rate, and an 8% forecasted investment growth rate.His house is valued at $400,000, and his mortgage is $300,000. With the Smith Manoeuvre, Andrew will reduce his tax bill by almost $30,000, get rid of his non-deductible mortgage debt 1.5 years sooner and increase his net worth by over $343,000. Andrew didn’t have to come up with any extra monthly cash over and above his regular mortgage payment; his Smith Manoeuvre professional just helped him restructure how his money flows. 

Your results will depend on several factors, like your debt and tax rate, but how much better off could you be? Let’s ask the question and find out! 

Ready to accelerate it even more?

If you have a rental property, or have been considering obtaining a rental property, you could accelerate your results dramatically through a strategic realignment of existing cash flows called the Cash Flow Dam.  This often results in a personal shortened mortgage amortization of under 12 years or less! The Cash Flow Dam is just one of 5 accelerators that can be utilized under the Smith Manoeuvre Strategy to achieve dramatic results.

Are you ready to learn more.

Here is an interview that Cheryl conducted with Robinson Smith, founder of the Smith Consulting Group Ltd. and son of Fraser Smith who created this strategy back in 1984. The strategy has been reviewed by Revenue Canada and endorsed by respected financial experts like economists, investment planners and lenders for nearly 40 years.