Canadians are told to either pay off their mortgage or invest for retirement—but what if you could do both at the same time?
In this video, I break down The Smith Manoeuvre, a Canadian wealth strategy that converts non-deductible mortgage debt into tax-deductible investment debt using a re-advanceable mortgage and a HELOC. This strategy has been used for decades, yet remains widely misunderstood.
I walk through:
• What the Smith Manoeuvre is and how it works
• How a re-advanceable mortgage unlocks investable equity
• Why HELOC interest can be tax deductible in Canada
• How dividends and tax refunds accelerate mortgage payoff
• The real advantages, risks, and who this strategy is actually for
In this video, I break down The Smith Manoeuvre, a Canadian wealth strategy that converts non-deductible mortgage debt into tax-deductible investment debt using a re-advanceable mortgage and a HELOC. This strategy has been used for decades, yet remains widely misunderstood.
I walk through:
• What the Smith Manoeuvre is and how it works
• How a re-advanceable mortgage unlocks investable equity
• Why HELOC interest can be tax deductible in Canada
• How dividends and tax refunds accelerate mortgage payoff
• The real advantages, risks, and who this strategy is actually for
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