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.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker Edmonton.