What Is the Smith Maneuver? How Can You Maximize Your Dollar?
KEY TAKEAWAYS
- The Smith Maneuver is a legal tax strategy that effectively makes interest on a residential mortgage tax-deductible in Canada.
- As a financial planning strategy, the Smith Maneuver involves converting the interest a homeowner pays on their mortgage into tax-deductible investment loan interest.
- For the Smith Maneuver, a borrower needs to obtain a re-advanceable mortgage, which is slightly different than a traditional mortgage.
Excerpts from: Investopedia “Smith Maneuver Technique (Advantages and Disadvantages)“
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