How to make your mortgage tax deductible (the Smith Maneuver) ?

There are not many people who would not want to:

-Pay off their mortgage more quickly (taux hypothécaire)
-Save money on taxes
-Save additional funds for retirement

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

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

This strategy uses a home loan product that was conceived for this purpose. It allows the homeowner to make an investment or pay business expenses and use this interest debt to reduce the interest to generate tax deductions. This strategy can work in a number of ways, and if you work with it properly, you can limit risk and increase the efficacy of the program. Since it has so many components, your best option is to discuss it by phone so that the best scenario for your case can be worked out. We work with financial planners who understand this strategy and can pull together all of the pieces just for you (taux hypothécaire).


• Pay down your mortgage more quickly
• Reap tax savings
• Increase funds for retirement
• Best for high income people
• Best for self-employed, but can be used for salaried employees as well
• Has been tested by tax lawyers, accountants and financial planners
• You can start the strategy any time, but the sooner the better
• It can be put on an automated program
• There are no additional fees to be paid


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

When to use this strategy for the long term

This strategy is usable in many situations, for all types 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 depending upon individual requirements (taux hypothécaire).


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

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

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