The Strategy
Transform your mortgage and transform your life
with The Smith Manoeuvre™
For over 40 years, the The Smith Manoeuvre™ has been helping Canadian homeowners convert their mortgage into a wealth-building tool, create tax advantages and build wealth for their futures without finding extra room in their monthly budget - and now, it's your turn.
Canadians have a problem
As the economy shifts and the future remains uncertain, Canadian homeowners are facing unprecedented financial pressure.
Inflation is eroding our purchasing power
Our tax burden now exceeds what we pay for food, clothing, and shelter combined
Pension security is no longer guaranteed
Retirement savings are falling behind
And at the end of the month, there is rarely anything left to invest
You need a solution that lets you...
Reduce your expensive tax burden
Invest in your future early and often
Eliminate costly mortgage debt sooner
It's as easy as 1, 2...
It's not about completely overhauling your life or increasing your income.
It's about intentional, strategic use of the tools you already have.
Step 1
Start with a readvanceable mortgage that lets you access your equity as you pay down your mortgage principal.
Step 2
Make your normal monthly payment, creating more available space on your Home Equity Line of Credit.
Step 3
Invest your newly available equity in qualifying assets.
Step 4
Deduct the interest on the money borrowed to invest.
Step 5
Apply tax refunds to mortgage as a prepayment, increasing available credit.
Step 6
Repeat.
Can you see the potential?
The Plain Jane Smith Manoeuvre™ can generate $300,000-$400,000 in additional net worth over a typical 25-year mortgage period—with no additional monthly cash flow required.
With the addition of one or more of the Smith Manoeuvre Accelerators, homeowners can potentially add up to or over $1 million to their net worth and eliminate their non-deductible mortgage in less than 10 years.
Sometimes, things that sound too good to be true really are that good.
Your Smith Manoeuvre, Built Your Way
Every homeowner's situation is different. The Smith Manoeuvre™ starts with a simple, powerful foundation - The Plain Jane - and can be customized with accelerators that match your financial life. Your Smith Manoeuvre Certified Professional will help you find the right combination for your needs.
The Plain Jane
The Foundation
This is the starting point for every Smith Manoeuvre™ journey.
As you make your regular mortgage payments, you reborrow the principal you've paid down and invest it. Your tax savings go back against the mortgage, speeding up the whole process. No new money required - just a smarter structure applied to what you're already doing. This is where everyone begins.
Debt Swap
Put your existing savings to work
If you have paid-up investments or savings sitting outside your mortgage structure, the Debt Swap lets you redeploy them to immediately convert a portion of your non-deductible mortgage debt into tax-deductible investment debt. A one-time
restructuring event that creates real tax savings from day one - without spending a single new dollar.
Cash Flow Diversion
Your monthly savings in overdrive
Already putting money aside every month? Instead of sending it straight to investments, route it through your mortgage first. That prepayment reduces your non-deductible debt faster, creates more room on your line of credit, and generates bigger tax deductions — all while getting that money invested exactly as planned.
Same dollars, doing more.
Cash Flow Dam
Supercharge your rental
If you own an unincorporated business or rental property, the Cash Flow Dam accelerator is one of the most powerful tools available. By routing business income through your principal residence mortgage before paying business expenses, you dramatically accelerate debt conversion and grow your tax deductions — without adding a single new dollar to your financial plan.
DRiP Accelerator
Putting your dividends to work
Rather than automatically reinvesting your dividends, the Dividend
Reinvestment Accelerator lets you route them through your mortgage as a prepayment first, then reborrow and reinvest. You still capture the power of compounding, but your dividends do double duty: accelerating mortgage elimination and growing your tax deductions at the same time.
Prime the Pump
Lump sum available equity
If your home's appraised value gives you more borrowing room than your current mortgage uses, you may have the option to invest that available equity immediately, giving your portfolio a head start from day one. If this accelertor is a fit for you, it can start your Smith Manoeuvre journey off on the fast track from day one. Speak to your SMCP to learn more.
But will it work for you?
The Smith Manoeuvre™ is designed for Canadian homeowners who:
