How to Make Your Mortgage Tax Deductible
Wouldn’t it be nice to find a way to make your largest expense tax deductible? Lean how to make your mortgage tax deductible, increase your net worth while paying down your mortgage.
You can increase your net worth and earn tax refunds annually by making your mortgage tax deductible!
$ The debt of the wealthy generates deductible interest to reduce their tax, which increases their cash flow. They get richer!
$ Your debt, your mortgage, is paid for with your after-tax dollars, and generates no deductible interest.
How can you enjoy the same benefits as the wealthy and our American friends and convert the mortgage loan from bad debt to good debt?
How can you earn tax refunds year after year without increasing your debt?
The problem: How much do you have to earn to pay off a $200,000 loan?
The solution
Many of you understand and take advantage of the benefits of tax savings by contributing to your RRSP.
What you might not know is that hidden in your annual mortgage payments is interest that can be tax deductible. We need to revisit the Canadian dream and look at how you can have both ownership and an income stream when you retire.
The Smith Manoeuvre
"THE SMITH MANOEUVRE is a financial strategy designed to convert the non-deductible interest debt of a house mortgage to the deductible-interest debt of an investment loan, which simultaneously ensures the building of a free and clear investment portfolio."
This strategy will generate free annual tax refunds for many years as your mortgage will be paid down and your investment portfolio grows.
It will convert your non-deductible interest debt (bad debt) to tax deductible interest debt (good debt) and it is perfectly legal.
The Smith Manoeuvre is not a leveraging strategy, it is not a reversible mortgage, you do not need to increase your debt and you do not need to spend any of your own cash to receive the benefits.
How you can benefit from using The Smith Manoeuver
Using The Smith Manoeuver, and assuming you have a $200,000 mortgage and an investment rate of return of 7%, you will improve your financial situation as follows ~
$ Value of your investment portfolio increases to $336,938
$ Increasing your family net worth by $144,904
$ Tax savings of $41,980
$ Reducing your amortization from 25 years to 22.25 years
How do I get started?
Contact Tracy Irwin, Accredited Mortgage Professional, at 1-866-797-7616 to review your situation to take advantage of a readvanceable mortgage.
* Excerpts taken from “The Smith Manoeuvre” –Fraser Smith, copyright 2002