The Smith Manoeuvre is a powerful Canadian strategy that makes your mortgage interest tax-deductible while building an investment portfolio — at no extra cost to you.
Most Canadians treat their mortgage as a debt to eliminate as quickly as possible. The Smith Manoeuvre flips that thinking entirely.
Developed by financial author Fraser Smith, this strategy uses a re-advanceable mortgage to convert your non-deductible mortgage debt into tax-deductible investment debt — while simultaneously building a growing investment portfolio.
The result? You pay off your home faster, build wealth in the background, and get a tax refund every year — all without spending more money than you already are.
The interest on your investment loan is tax-deductible in Canada. This means you get a refund every year based on your marginal tax rate — money that goes back to work paying down your mortgage.
You're investing with money you've already committed to your mortgage payment. No extra out-of-pocket cost — your equity does the work, and your portfolio grows alongside your home.
Tax refunds and investment income get recycled back into your mortgage as lump-sum payments, reducing your principal and shaving years off your amortization.
Not sure which category you fall into? That's what a discovery call is for — no pressure, just clarity.
Based on a $500,000 mortgage, 25-year amortization, 5% rate, investing in a 6% avg. return portfolio
*Illustrative example only. Results vary based on individual circumstances, tax bracket, investment returns, and mortgage terms. Speak with a certified practitioner for personalized projections.
A clear, jargon-free introduction to the Smith Manoeuvre — what it is, how it works, and whether it might be right for your family. Read it in under 10 minutes.
Download Free GuideSeven short video lessons (each under 4 minutes) walking you through the full Smith Manoeuvre framework — from mindset to implementation.
As a certified practitioner, I can run the numbers for your specific situation and show you exactly what this strategy could look like for your family.