Invest every month
Invest money you wouldn’t have had available otherwise each month.
Your home. Another horizon.
You built a place to call home. The Smith Manoeuvre offers another way to think about your mortgage: pay down principal, then reborrow to invest, under certain conditions.
The same home. A decision worth understanding.
The goal is to gradually convert personal debt into borrowing for investment. It is neither debt forgiveness nor a promise of returns.
Others have started the conversation.
“My future is significantly brighter since I implemented The Smith Manoeuvre™. In addition to my new, free tax deduction refund cheques which I have received for two years now, it has allowed me to start building an investment portfolio that otherwise was going to have to wait until my mortgage was paid off. Sooner is better. Much better.”
“Where [my husband and I] were riddled with fear of investment in the past, we are now having a little fun with it while remaining in the ‘low to moderate risk’ group. We’ve learned so much and come so far in the past year and a half and our financial situation improved so much that we want to spread the good word to everyone we know.”
“Not only does The Smith Manoeuvre™ allow us to invest to grow our wealth without any strain on our budget, but it actually increases the amount of Child Tax Benefit that we receive, putting more money in our pockets each month and helping ease the financial burden of raising a family. This should be mandatory reading for all Canadians!”
The top 10 most asked questions about The Smith Manoeuvre™
Who can benefit from The Smith Manoeuvre™?
The Smith Manoeuvre™ works for Canadian homeowners with conventional mortgages who have at least 20% equity in their home (or can get there). If you have a mortgage and pay taxes, you have a financial opportunity waiting to be unlocked.
Is The Smith Manoeuvre™ legal and CRA-compliant?
Absolutely. The Smith Manoeuvre™ uses established financial tools recognized by Canadian financial institutions and the CRA.
When you borrow with the reasonable expectation of generating income, the interest becomes tax-deductible—this is the foundation of the strategy. Many legal, financial, and even CRA employees implement this strategy on their own homes because it's a legitimate, powerful approach to wealth creation.
What kind of investments work with The Smith Manoeuvre™?
The Smith Manoeuvre™ works with non-registered investments that have a reasonable expectation of generating income. While there's a wide universe of qualifying investments, not everything that seems like an "investment" will qualify for tax deductibility.
This is why working with a Smith Manoeuvre Certified Professional™ is essential—they'll guide you toward appropriate investment vehicles based on your specific situation.
How can no new money be required when my line of credit balance increases?
This is where the magic of The Smith Manoeuvre™ happens.
As you make your regular mortgage payment, it becomes increasingly efficient—more of each payment goes toward principal rather than interest. This increasing efficiency covers the interest on your investment line of credit, allowing you to continue the strategy without finding extra monthly cash.
What type of mortgage do I need to implement The Smith Manoeuvre™?
You'll need a readvanceable mortgage—a specialized financial product that combines a traditional mortgage with a home equity line of credit component that increases as you pay down your principal.
But not just any old readvancable mortgage will do - there are nuances within the strategy that require a specialized product. Your Smith Manoeuvre Certified Professional™ can help you determine if your current mortgage qualifies or guide you through obtaining the right structure.
Can't I just get a home equity line of credit (HELOC) and do this myself?
No.
While many non-certified professionals may suggest this, a standard HELOC alone doesn't provide the structure needed for proper implementation of The Smith Manoeuvre™.
The strategy requires a specific mortgage setup and systematic approach to be effective and compliant.
Does The Smith Manoeuvre™ work during economic downturns?
Yes.
The Smith Manoeuvre™ utilizes dollar-cost averaging, a proven investment approach that can accelerate your financial growth during both challenging and prosperous economic periods.
With a long-term horizon, market fluctuations become less significant. The strategy has successfully weathered numerous economic cycles during its forty-year history.
What are the risks to consider?
Like any financial strategy, The Smith Manoeuvre™ comes with considerations. Probably the most significant risk is implementing it incorrectly without professional guidance.
Market fluctuations are also a factor, but the strategy is designed to weather economic ups and downs—it has been helping Canadian homeowners build wealth through multiple economic cycles for over forty years.
In Robinson Smith’s book, Master Your Mortgage for Financial Freedom, he outlines a number of potential considerations.
Is The Smith Manoeuvre™ a leverage strategy?
No.
The Smith Manoeuvre™ is a debt conversion strategy.
You're not creating new debt—you've already leveraged when you purchased your home. You're simply converting your existing non-deductible mortgage debt into tax-deductible investment debt, making your largest expense work harder for you.
Why do I need professional help to implement The Smith Manoeuvre™?
While the concept is straightforward, there are nuances that require expert guidance. We're dealing with investments, mortgages, and the CRA—three areas where mistakes can be costly.
A Smith Manoeuvre Certified Professional™ has the specialized training to help you navigate these complexities and maximize your benefits while avoiding potential pitfalls.
The next step is a conversation.
An illustration helps you understand. A professional helps you examine what actually fits your situation.
