Karl Ruban B.Comm (Hons.), CPA, CA, CFP®, CPCA

Senior Financial Planning Advisor

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Is Your Mortagage Tax Deductible?

Karl Ruban and Fraser Smith first introduced The Smith Manoeuvre to Ontario in 2003.  Since that time, thousands of Canadian taxpayers have used this innovative strategy to convert the interest expense of their mortgage into large annual tax deductions.

These tax deductions produce annual tax refund cheques for the homeowner every year for as long as they live.

A typical homeowner will pay interest of $12,000 per year on a $300,000 mortgage at 4%.  If they employ The Smith Manoeuvre, that $12,000 will be a tax deduction, using a the 40% average tax bracket, converting interest to be deductible for tax purposes will reduce taxes otherwise payable by $4,800.

For reviews of the best selling book "Is Your Mortgage Tax Deductible?", please click here. Call Jeanne at 1-877-494-7744 to order your copy.

Investment Journal Article on The Smith Manoeuvre being approved by the Supreme Court.


Readvanceable Mortgage

There are three major benefits to this unique structure:    

  1. This allows you to pay off the mortgage sooner
  2. You qualify for ongoing tax refunds
  3. Build an open pension* that provides monthly dividends (*non-RRSP investment portfolio)

The opinions expressed here are not necessarily those of Assante Capital Management Ltd. or Assante Financial Management Ltd. Assante does not endorse the Smith Manoeuvre and does not guarantee any tax advantage in the use of this strategy. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.  Please speak to your legal, tax and banking professionals for advice before embarking on this strategy.