Frequently Asked Questions

The Smith Manoeuvre™ works for Canadian homeowners with conventional mortgages who have at least 20% equity in their home (or can get there). If you have a mortgage and pay taxes, you have a financial opportunity waiting to be unlocked.

Absolutely. The Smith Manoeuvre™ uses established financial tools recognized by Canadian financial institutions and the CRA.

When you borrow with the reasonable expectation of generating income, the interest becomes tax-deductible—this is the foundation of the strategy. Many legal, financial, and even CRA employees implement this strategy on their own homes because it's a legitimate, powerful approach to wealth creation.

The Smith Manoeuvre™ works with non-registered investments that have a reasonable expectation of generating income. While there's a wide universe of qualifying investments, not everything that seems like an "investment" will qualify for tax deductibility.

This is why working with a Smith Manoeuvre Certified Professional™ is essential—they'll guide you toward appropriate investment vehicles based on your specific situation.

This is where the magic of The Smith Manoeuvre™ happens.

As you make your regular mortgage payment, it becomes increasingly efficient—more of each payment goes toward principal rather than interest. This increasing efficiency covers the interest on your investment line of credit, allowing you to continue the strategy without finding extra monthly cash.

You'll need a readvanceable mortgage—a specialized financial product that combines a traditional mortgage with a home equity line of credit component that increases as you pay down your principal.

But not just any old readvancable mortgage will do - there are nuances within the strategy that require a specialized product. Your Smith Manoeuvre Certified Professional™ can help you determine if your current mortgage qualifies or guide you through obtaining the right structure.

No.

While many non-certified professionals may suggest this, a standard HELOC alone doesn't provide the structure needed for proper implementation of The Smith Manoeuvre™.

The strategy requires a specific mortgage setup and systematic approach to be effective and compliant.

Yes.

The Smith Manoeuvre™ utilizes dollar-cost averaging, a proven investment approach that can accelerate your financial growth during both challenging and prosperous economic periods.

With a long-term horizon, market fluctuations become less significant. The strategy has successfully weathered numerous economic cycles during its forty-year history.

Like any financial strategy, The Smith Manoeuvre™ comes with considerations. The most significant risk is implementing it incorrectly without professional guidance.

Market fluctuations are also a factor, but the strategy is designed to weather economic ups and downs—it has been helping Canadian homeowners build wealth through multiple economic cycles for over forty years.

In Robinson Smith’s book, Master Your Mortgage for Financial Freedom, he outlines a number of potential considerations.

No.

The Smith Manoeuvre™ is a debt conversion strategy.

You're not creating new debt—you've already leveraged when you purchased your home. You're simply converting your existing non-deductible mortgage debt into tax-deductible investment debt, making your largest expense work harder for you.

While the concept is straightforward, there are nuances that require expert guidance. We're dealing with investments, mortgages, and the CRA—three areas where mistakes can be costly.

A Smith Manoeuvre Certified Professional™ has the specialized training to help you navigate these complexities and maximize your benefits while avoiding potential pitfalls.