Did you know there’s a clever trick to get more out of your mortgage? It’s called the “Smith Maneuver,” and it’s a way to make your mortgage interest tax deductible in some cases. It works this way: Every time you pay your mortgage, a part of that payment, the “principal,” can be re-borrowed and invested in things like dividend-paying stocks, mutual funds, real estate and bonds.

What’s the benefit? Well, the interest on this borrowed money is tax-deductible, as it is used to generate investment income. Investing this way not only helps your money grow but also lets you save on taxes. It’s like making your mortgage multitask – paying off your home while growing your wealth. By re-borrowing and investing consistently, you’re transforming your regular mortgage payments into a smart financial move.

If you’re interested to learn more about how the Smith Maneuver can save you money, get in touch. It’s definitely a more complex maneuver, so it’s good to get advice. I would be happy to answer your questions! Give me a call at 780-720-2490, or you can email me at jason@edmontonmortgagebroker.com.