The Smith Maneuver Tax Deductible Mortgage, Completely Done for You
- Automatically convert your taxable mortgage interest into tax deductible interest
- No additional monthly mortgage payment or cost on your part
- Saves homeowners over $300,000 on average
Altrua Financial Certified Financial Planners (CFP) and Mortgage Brokers specialize in the Smith Maneuver, facilitating all aspects of the approval and implementation, so you can benefit with ease.
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What is the Smith Maneuver tax deductible mortgage?
The Smith maneuver is a legal, time tested mortgage strategy that has helped thousands of Canadians build equity faster, pay off their mortgage and retire sooner.
How does it work?
It’s based on a Big Bank mortgage/Home Equity Line of Credit (HELOC), readvanceable all-in-one product. As the mortgage is paid down over its normal amortization (ex.10,15, 25 or 30 years), the HELOC borrowing limit increases on a monthly basis.
Each month the HELOC limit increases, the HELOC is automatically borrowed from and automatically invested into the financial markets.
Because you’re investing the borrowed HELOC funds, you can write off/ deduct the HELOC interest cost from your income taxes. In Canada you can legally deduct borrowing costs linked to income producing investments.
Why get the Smith Maneuver?
Over time, your regular mortgage is paid down, and your tax deductible HELOC and investment pool grows.
Income tax refunds, from your deducted HELOC interest can be used to pre pay the main mortgage faster, and perpetuate the conversion process, savings years off your mortgage.
It has been shown over 50 years that market index average returns (ex. TSX and S&P 500 indexes) are higher than the tax deductible cost of borrowing over time. So the result is additional gains or a ‘profit’ spread for you – over $300,000 on average all with no additional mortgage payment or costs to you.
At Altrua we do all the ‘heavy lifting’ for you to implement and manage the Smith Maneuver with minimal time and effort.
Click to Book an Appointment Or Call 1-877-248-9210 to Talk To A Specialist Now
Included with the Altrua Financial, Done for You Smith Maneuver
- Recommendation of best HELOC mortgage product with the best mortgage rates and features
- Implementation of the mortgage and account set up
- Optional partnership with the largest index investment portfolio manager in Canada (CI Investments)
- Optional introduction to an ultra low cost tax accountant/ preparer and free record keeping
- A personalized Financial Plan to show you the expected results and track over time
- Unlimited long term availability for questions and changes as needed
We handle the heavy lifting so you don’t have to. In just minutes get approved for a life changing financial strategy.
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Smith Maneuver Done For You
Put your idle home equity to work for your future
FAQ’s
Altrua Financial Questions:
Does Altrua charge anything?
No. The mortgage lender compensates us for mortgage origination and financial planning services respectively, so we can include all services with no out of pocket expense.
How long does it take to impliment?
Implementation involves minimal time on your end. Typically 2-3 hours to set up, depending on your questions. Altrua Financial will help with all the 'heavy lifting' involved and work with you over time for best results.
What is needed from me?
The same information you would provide to any Bank or Mortgage Broker. Income, asset, credit/liability, property information are all required to approve the mortgage. We ask a few additional questions to help plan the Smith Maneuver and work with you to connect with trusted, licensed investment advisors.
What qualifies Altrua Financial to do this?
As Certified Financial Planners and Mortgage Brokers, we are uniquely positioned to help you implement and manage the Smith Maneuver long term. We have worked with 2000+ clients over the past 16 years and have a comprehensive understanding of the mortgage, income tax, investment and how they affect each other.
Does Altrua Financial invest my money?
No. Altrua Financial nor its representatives are licensed investment advisors. We are independent Certified Financial Planners (CFP) and licensed Mortgage Brokers. We offer a range of investment options including ‘do it your self’/ DIY investing, working with an existing investment advisor, or a partnership with the largest investment manager in Canada.
Smith Maneuver Questions:
What are the risks?
Before any investment decision is made, a licensed investment advisor must be consulted with to determine suitability. Because the Smith Maneuver involves borrowing to invest, this increases risk and potential for losses. Over time, financial markets and interest rates will fluctuate, sometimes in a volatile manner, and if the investor is not comfortable with these market swings or would be inclined to sell during market declines, the Smith Maneuver would not be a suitable financial strategy for this investor type. The Smith Maneuver relies on long term commitment and financial market returns.
Who is it for?
The Smith Maneuver is best suited for those with a higher tolerance for risk, who are comfortable with market fluctuations and whom are comfortable with committing to a longer term time frame to realize maximum benefits. Before any investment is made, a licensed investment advisor must be consulted with to determine suitability.
What if the market crashes?
The Smith Maneuver converts taxable interest into tax deductible interest over time, and in doing so promotes investing over time or ‘averaging in’ to the market. This means you’ll be likely to take advantage of market dips when they happen.
What if there is a change in my circumstances later on?
If there is a change in real estate or a need for capital sooner, the Smith Maneuver strategy can be arranged to allow for earlier access to investment funds (like an emergency fund), port/transfer of the mortgage to a new home, or collapse of the strategy, if required. Although long term commitment is encouraged for maximum benefit, the strategy is flexible and adaptable to changes to your situation.
How do I collapse it at the end?
There are a number of strategies that can be planned in order to realize potential gains from the Smith Maneuver, and it really depends on the individual situation. One strategy may involve purchasing RRSPs with the investment sale proceeds. Others can involve a slower collapse to maximize tax efficiency. Connect with Altrua Financial to help determine your best strategy.
Does this work for DIY investors?
Yes, absolutely. We can work with any existing investment relationship, including do it yourself investing. As added benefits, you get a financial plan, expertise in implementation/set up and an ongoing partnership with a dedicated mortgage advisor.
Disclaimer: Past performance does not guarantee future results. The information in this report is for education and illustrative purposes only, and is not intended to be used as, or construed as investment advice. Seek the advice of a licensed investment processional before investing.