The tax deductible mortgage strategy (Smith Maneuver)

There are not many people who would not want to:

-Pay down their home loan more quickly (taux hypothécaire)
-Save money on taxes
-Accumulate additional funds for retirement

Through the use of a specialized mortgage strategy called the Smith Maneuver, you can achieve all of these goals. And you can do them all together! - taux hypothécaire

This strategy is named for Fraser Smith, a financial planner from British Colombia who developed this strategy a few years ago (see the press review). I encountered Fraser in Toronto at a mortgage strategy seminar (there were three mortgage consultants from Quebec).

The strategy is through a mortgage product conceived for this type of strategy that permits one, over time, to make investments or pay business expenses and in this manner lower the interest paid to this end on your taxes. There are many ways to limit risks and to increase the efficiency of this strategy.

This strategy has many components and it is preferable to discuss it by phone to find the best way to use it in your case. We also use the services of financial planners who specialize in this type of strategy to put together the various components of the strategy. (taux hypothécaire)

Advantages

• Pay down your mortgage faster
• Save on taxes
• Save for retirement
• Ideal for high-income individuals
• Best for the self-employed, but does work for salaried individuals
• Approved by financial planners, tax accounts and tax lawyers
• You can start this strategy when you want, but you will get a greater advantage the sooner you start
• You can set it up on an automated program
• No additional fees to put the strategy in place

Disadvantages

• It is best for those with a home loan that is 75% of the value of their home
• The strategy requires that the borrower can increase his payments by 2% per annum
• If the investment piece is used (mandatory in the case of a salaried employee), there exists the risk associated with the investment
• In order to reduce the risks associated with the investment, this kind of mortgage should be used over the longest possible period (10 to 15 years or more)
• It requires a good understanding of certain principles of investment, or the help of a financial planner

Using this strategy for the long term

The strategy works in various different situations, for any type of property and each kind of employment situation. The higher your taxes are, the better the strategy will work for you. It can also be put together with other strategies to help you meet your particular needs - taux hypothécaire.

What does all of this mean to us?

Thanks to Fraser Smith, we will be able to answer three critical questions important to our financial situation:

Is there a quicker way to pay down my home loan? - taux hypothécaire

Is there a way I can save on my taxes?

Can I find other ways to save funds for retirement?

For more information on this type of mortgage strategy, get in touch with us and you will learn how the principles of the Smith Maneuver can help you with your mortgage and your taxes.

Article Source: http://www.christiannotepad.com

Gregory is an Accredited Mortgage Professional (AMP). To get more information on Home Loans rates - taux hypothecaire, please visit: Hypotheque | Mortgage