Canadians are told to either pay off their mortgage or invest for retirement—but what if you could do both at the same time? 🇨🇦🤔 In this video, I break down The Smith Manoeuvre, a Canadian wealth strategy that converts non-deductible mortgage debt into tax-deductible investment debt using a re-advanceable mortgage and a HELOC. This strategy has been used for decades, yet remains widely misunderstood. 🙂 I walk through: • What the Smith Manoeuvre is and how it works • How a re-advanceable mortgage unlocks investable equity • Why HELOC interest can be tax deductible in Canada • How dividends and tax refunds accelerate mortgage payoff • The real advantages, risks, and who this strategy is actually for 📊 At the end of the video, I share my real numbers transparently, including: • My ~$207,000 Smith Manoeuvre investment portfolio cobsisting lf solely $XEQT • How much I’ve paid in HELOC interest over the past 4 years • The approximate tax refunds generated from deductible interest This is not a beginner strategy and it’s not risk-free—but for the right Canadian homeowner, it can be a powerful way to eliminate non-deductible debt while building long-term wealth. ⚠️ This video is for educational purposes only and is not financial or tax advice. Always consult a qualified financial professional and tax advisor before implementing leveraged investment strategies. https://youtu.be/d7zcMJykVHU?si=Wg-GeCRCg5_f0IRj
26K views
66 Comments
N W@tamara50 · 7mo
This is too advanced for me 😥
PortfolioPulse @portfoliopulse · 7mo
Thanks Moe, I started SM last year around September and looking forward to file taxes and utilize the interest occurred on the borrowed money and continue this year for the bigger picture.
Jeece Laf@jeece · 7mo
Hey, first comment on Blossom. I was looking into SM yesterday and i made my own simulation. I could save 10 years on my mortgage with this strategy. But what happens if the market crashes and your debt far exceeds your investments? In quebec you can only deduce against the revenues you make, so down years will hurt, even more if the bank calls your debt
Lisa @retired · 7mo
🙌🏻🙌🏻🙌🏻
See the full comment section 👀Sign up for the full Blossom experience!
