June 18, 2024


Mad about real estate

The “smith Mortgage Strategy” (tax Deductible Home Loan Strategy)

Who would not want to:

• Pay down their home loan more quickly – taux hypothécaire
• Reduce taxes and
• Save more for retirement

There is a home loan strategy called “the Smith Maneuver” that helps you achieve all of these goals, all at the same time – taux hypothécaire.

This kind of mortgage strategy is named for its inventor, Fraser Smith. Mr. Smith is a financial planner in British Colombia who invented this interesting strategy a few years ago. I was fortunate enough to be one of three brokers from Quebec to meet Mr. Smith when he spoke on this concept in Toronto.

This strategy, formed for a mortgage product that can expressly use it, permits the mortgage holder to make an investment or pay business expenses and, over time, get a tax benefit from the related interest expenses. There are a number of ways in which it can work, but if it is approached in the right manner, you can limit your risk while increasing how efficiently the strategy works for you. There are many parts to this strategy, so it is recommended that you phone and discuss your individual circumstances and how they can be taken into consideration using this strategy. We work with financial planners who can analyze your financial needs and put the right package together for you – taux hypothécaire.


• Pay down your mortgage faster
• Reap tax benefits
• Increase funds for retirement
• Best for high income people
• Best for self-employed, but can be utilized for salaried employees as well
• Has been approved by tax lawyers, accountants and financial planners
• You can begin the strategy any time, but the sooner the better
• It can be set up on an automated program
• There are no additional fees required


• Should be used by homeowners who have a mortgage which is 75{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the home value
• The borrower should be in a position to increase his payments by 2{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} per year
• For salaried people, the investment component must be used, so the usual risks associated with the investment has to be taken into account
• The strategy functions best when it is used over the longest term possible, at least ten to fifteen years, in order to reduce the investment risk as much as possible
• You should have a good understanding of investment principles, or you should solicit the help of a financial planner to help you with this understanding

When to use this strategy for the long term

This strategy can be used in many situations, for all kinds of properties, and for every status of employment. The more you pay in taxes, the better this strategy will work. This strategy can be combined with other strategies according to individual requirements (taux hypothécaire).


Fraser Smith developed a strategy that helps us respond to three important questions:

– How can I pay down my mortgage more quickly? – taux hypothécaire
– How can I reduce my taxes?
– How can I save more money for retirement?

This is a wonderful development, but there are many was the Smith Maneuver can be used, differing from case to case. You should contact us and learnthe way that would work best for you.