The Smith Manoeuvre

Who Should Use the Smith Manoeuvre?

  • Homeowners looking to pay significantly less tax and grow their retirement savings.
  • Anyone who owns a home that has at least 20% equity in the property.
  • Canadians that want to make their mortgage tax deductible.

What is the Smith Manoeuvre?

The Smith Manoeuvre will get you free tax refunds from the CRA, help you pay off your mortgage faster, and build your investment portfolio... simultaneously. The Smith Manoeuvre is a financial strategy designed to convert the non-deductible interest debt of a house mortgage to a deductible-interest debt of an investment loan, which simultaneously ensures the building of a free and clear investment portfolio.

View Frequently Asked Questions on The Smith Manoeuvre

How Does the Smith Manoeuvre Work?

The Plain Jane Smith Manoeuvre (The basic two-step process):

  • Pay down your mortgage as fast as you can. Re-borrow the monthly principal reduction of your mortgage and invest the loan proceeds.
  • Apply tax refunds against your first mortgage then immediately re-borrow and invest the same amount.

The Enhanced Plain Jane Smith Manoeuvre (Develop even larger net worth!):

  • Cash in and apply current paid up assets against the first mortgage in the morning, re-borrow and invest the same amount in the afternoon.
  • Divert any monthly savings or investment programs against the first mortgage, and immediately re-borrow and invest the same amount.

How Do I Get Started?

  • Obtain a copy of Is Your Mortgage Tax Deductible? The Smith Manoeuvre by Fraser Smith available through First Foundation, or on-line at: – and read it.
  • Arrange a free, no-obligation, consultation and proposal with one of the experts at First Foundation.

Contact Us today to learn how you can implement The Smith Manoeuvre or return to our index of Brokerage Mortgage Options

Last updated May 22, 2017