Cash Damming for Rental Property Mortgages, Made Easy

  • Reallocate your rental income to pay down your non deductible, owner occupied mortgage faster
  • Legally minimize non deductible interest costs
  • Realize $1,000’s in income tax savings, while reducing risk exposure 
  • Rely on a time-tested system and resources to help ensure effectiveness and CRA compliance.

Restructure your mortgage to minimize income tax and maximize benefits from your rental property. Our comprehensive cash damming solutions help ensure confident, effective implementation and long term CRA compliance.

mortgage broker kitchener

Brent Richardson, CFP, Mortgage Broker/ Owner Altrua Financial Inc.

Smith Maneuver Certified Professional (SMCP)

Book a Free 30 Minute Cash Damming Consultation

  • Brent Richardson is a Certified Financial Planner (CFP®), a Principal Mortgage Broker, and a Tax Accountant, bringing expertise across each area of the strategy. He is a fully accredited Smith Maneuver Certified Professional (SMCP) and has personally implemented the Cash Damming strategy himself.
  • Understand how the Cash Dam works with personalized calculations using the Official Smith Maneuver/ Cash Damming calculator.
  • Recommendation for optimized mortgage and account structure.
  • Learn about the pitfalls to avoid. 
  • Income tax and bookkeeping best practices for CRA compliance.
  • Answers to your questions.

How does the Cash Dam mortgage strategy work?

The Cash Dam is a legal, time tested system that has helped thousands of Canadians optimize their net worth while diversifying and reducing risk. Here’s how the strategy works in 3 easy steps:

1. Structure your owner occupied property with a re-advancable mortgage that includes a Home Equity Line of Credit (HELOC). As you pay down the principal balance of your mortgage every month, the HELOC borrowing limit increases on a dollar-to-dollar basis.

2. When you receive the monthly rent payment, use it as an extra mortgage pre-payment against your owner-occupied property. This pays your non-deductible mortgage down years sooner, saving thousands in non-deductible interest costs. Once the owner-occupied mortgage is paid off, you’ll have other options for the freed-up cash flow.

3. Any rental property-related expenses, including mortgage payments, property taxes, insurance, condo fees, and maintenance, are expensed to the tax deductible HELOC. This creates a growing tax deductible mortgage balance, leading to significant income tax savings and efficiencies.

*This is not intended to be personalized advice. Discuss the strategy with Altrua Financial or a different licensed professional to see if it’s right for you

Your Comprehensive Cash Damming Solution

Using accurate and reliable Cash Damming software, we show how the strategy can help optimize your household balance sheet. We review step-by-step operation, down to a monthly basis, to help ensure:

  • Effective set up the first time.
  • CRA compliant structure and expense tracking.
  • Automation where possible, to simplify your experience with the strategy.
  • Tools and resources to help manage your success.
  • Long-term support for when you need it, as markets and life circumstances change.