Thinking about using the Smith Manoeuvre to build wealth while paying off your mortgage? In this video, I share my real-world experience implementing the Smith Manoeuvre in Canada—including how I obtained a re-advanceable mortgage [i.e. Scotia Total Equity Plan (STEP)], the mistakes I made for not deducting the interest after using "Prime the Pump" technique, how I dealt with the CRA, and the lessons I've learned after growing my portfolio to over $234,000. I also provide a complete update on my current Smith Manoeuvre portfolio, including my ETF holdings ($XEQT), unrealized gains, interest paid, tax refunds received, and how I continue to optimize the strategy for long-term financial independence. I also share how I drafted my response to CRA to provide the additional information they request and the cost I was quoted by an accountant (which I chose to pass on). 📈 Portfolio Highlights Portfolio Value: $234,000 Amount borrowed: ~ $69,000 (Equity borrowed via Prime the Pump) plus $75,000 HELOC Unrealized Gains: ~ $89,600 Interest Paid: ~ $22,600 Tax Refunds: ~ $8,100 Key Takeaways: ✅ Claim eligible investment loan interest to reduce your taxes. ✅ Use a re-advanceable mortgage to unlock home equity for investing. ✅ Keep detailed records for potential CRA reviews. ✅ Pay down your mortgage strategically to maximize deductible borrowing. ✅ Consider reborrowing investment interest to improve long-term cash flow. Anyone else here who has implemented the Smith Manoeuvre? If yes, what are your main holdings in your SM portfolio? I'd love to know. 😊 https://youtu.be/BMh8WvaN2hA
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35 Comments
Kyle Garrett@kgcottawa · 22d
A SmithManouvre video from Moe !
Not Financial Advice @anpc86 · 22d
the son of the creator of Smith Maneuver runs a certification program if i remember correctly, the CRA part is what always leans me away from doing it, i'll do leverage part, and of course you need to make it clear if you own the mortgage with a partner they have to be on board too
Mulligans @mulligans · 16dEdited
Is it worth it to borrow 60k from line of credit (4.45%) to max my TFSA?
Kathy @superfox07 · 21d
I just had my Smith manoeuvre plan and flnancial plan with Moola financial and it was awesome to see how this and my retirement will work out as well as, to make sure I am maximizing my strategies and tax, yes it cost money but getting it wrong cost more
Shawn Popkie@firedog · 21d
I am holding HXQ, HXS, and VDY with SM in non-reg account
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