The Smith Maneuver Tax Deductible Mortgage, Completely Done for You
- Automatically convert your mortgage into tax deductible interest
- No additional monthly mortgage payment or cost on your part
- Obtain mortgage freedom years faster and retire sooner
- Saves homeowners over $300,000 on average
We provide a unique Smith Maneuver ‘all in one’ solution by facilitating all aspects of the mortgage approval, implementation, and long term management – so you can benefit with ease.
Brent Richardson, CFP, Mortgage Broker/ Owner Altrua Financial Inc.
Book a Free 30 Minute Smith Maneuver Consultation
- Brent Richardson is a Certified Financial Planner (CFP®), Principal Mortgage Broker, and Tax Accountant, pulling together expertise in each area of the strategy
- Understand how the Smith Maneuver really works
- Recommendation for optimized, tax efficient investment allocation
- Mortgage implementation advice for the best operation
- Smith Maneuver calculations and projections based on your unique situation
- Answers to your questions
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.
(2 – min explainer video)
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, saving 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.
The Smith Maneuver Made Easy!
Everything You Need Under One Roof
Comprehensive, Holistic Financial Planning
Using industry leading financial planning software, we show how the Smith Maneuver can help grow your wealth and reach your goals sooner. We collaborate to determine your optimal:
- Accumulation of assets using the Smilth Maneuver, pension contributions and other initiatives.
- Investment allocation for the Smith Maneuver.
- De-cumulation (sale) of assets during retirement in the most tax efficient way.
- Review for opportunities and efficiencies to improve your holistic financial picture.
- Answer questions such as ‘When can I retire’, ‘How much will I earn in retirement’, and ‘How much do I need saved’?
Smith Maneuver Education and Resources
FAQ’s
Altrua Financial Questions:
How long does it take to impliment?
Implementation involves minimal time on your end. Approximately 2 hours to set up, depending on the number of questions and the length of discussion. Long term you'll need to provide us with financial statements so we can take care of the bookkeeping for you. This will take about 15 minutes of your time annually. We will automate the rest for you. You can check your progress online at any time, and we also issue annual progress reports.
What is needed from me?
The same information you would provide to any Bank or Mortgage Broker. Income, asset, credit/liability, and property information are all required to approve the mortgage (if you are not currently in a re-advancable mortgage).
We ask additional questions to help plan the Smith Maneuver and position within your Financial Plan.
What qualifies Altrua Financial to do this?
Owned and operated by Brent Richardson, CFP, Tax Accountant and Principal Mortgage Broker, we are uniquely positioned to help you implement and manage the Smith Maneuver long term. We provide a comprehensive understanding of mortgages, income tax, investments and how they affect each other within the Smith Maneuver strategy. We have successfully worked with 2000+ clients over the past 17+ years.
What fees does Altrua Financial charge?
We do not charge any fees, as our lender and portfolio management partners compensate us for the work we do.
What if I'm a self directed/ DIY investor?
You can remain a self-directed DIY investor; however, to subscribe and benefit from our full service approach, we ask that you invest the Smith Maneuver-related funds through our Wealth Management partner.
Does Altrua Financial invest my money?
No. Altrua Financial or its representatives do not invest your funds. We rely on one of the largest Wealth Managers in Canada to manage your Smith Maneuver investment portfolio. We are independent Certified Financial Planners (CFP), Tax Advisors, and licensed Mortgage Brokers. However, the partnership with our Wealth Manager allows us to view your investments at any time, enabling us to collaborate effectively.
Smith Maneuver Questions:
What are the risks?
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 can weather market fluctuations, and who are comfortable with committing to a longer term time frame to realize maximum benefits.
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 positions you to take advantage of market dips when they happen by buying in at lower prices. While also experiencing gains in bull markets.
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.
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.
Will this work with my existing mortgage?
It may or may not. In our introductory consultation, we will determine if you are currently in a re-advancable mortgage that includes a HELOC. If you aren't, we offer options to sign up for one using a major Canadian Bank lender, at today's best interest rates.
Smith Maneuver Done For You
Put your idle home equity to work for your future
Disclaimer: Past performance does not guarantee future results. The information on this site is for educational purposes only and is not intended to be used as or construed as investment advice.