Use Home Equity As A Tax Deductible Mortgage Plan

The Smith Manoeuver is a tax deduction method often referred to when borrowing from your home equity for the purposes of investing.  This is a great refinance strategy to help reduce personal income tax while increasing net worth.

It works by borrowing equity from your home and investing in Real Estate, Mutual Funds, Stocks, RRSPs and more using the money.  This is especially favorable for those who earn high incomes and need to off set the high personal taxes by using their equity to buy investments.

There are rules that must be followed for this type of refinance, but essentially if you borrow to invest, you must prove the annual interest paid on the borrowed funds by way of separate statements.

Did you know there are Mortgage Options specifically designed for Tax Deduction?

There are several Non-Bank Lenders that have designed ways to refinance your mortgage to take out your equity, and provide separate statements for up to 5 accounts. This allows you to buy separate investments. All of them from one home loan.

Refinance by applying on-line now, reduce your taxable income tomorrow.