The Smith Manoeuvre teaches you how to turn your mortgage into annual tax refunds. It is a remarkably efficient way for you and your family to raise large amounts of new money, through free tax refunds, so that you can start building a larger nest egg sooner.
Take a look at this list of other benefits and what you can do with the tax saved:
This creative strategy is legal and is based on Canada Revenue Agency (formerly Revenue Canada) rules and regulations. Like the many wealthy Canadians who have successfully used this strategy to increase their net worth, once implemented, you will see your investment portfolio grow as fast as you reduce your mortgage. The Smith Manoeuvre converts non-deductible interest debt (bad debt) to tax -deductible interest debt (good debt). Loans such as car loans, vacation loans and especially home mortgage loans are considered bad debt and cost Canadians millions of dollars in interest annually. Interest from bad debt is not tax deductible. If this same amount of interest is treated as a tax deduction, there could be a noticeable reduction in income taxes paid and possibly even impressive tax refund cheques. If you have interest to pay why not at least convert it to interest that will allow you to receive a tax refund.