Most Canadians are told to pay off their mortgage before investing. That sequential approach costs you decades of growth. The Smith Manoeuvre lets you do both — simultaneously — without finding extra room in your monthly budget.
The Smith Manoeuvre is a CRA-approved financial strategy that converts your non-deductible mortgage interest into tax-deductible investment loan interest — allowing Canadians to build wealth while paying down their mortgage.
Developed by Fraser Smith in the 1980s and used by thousands of Canadian homeowners, it requires no extra monthly cash — you simply redirect your existing mortgage payments to do double duty.
The mechanics are straightforward. Each month, as you pay down your mortgage principal, that same amount becomes available to borrow again through a HELOC — and you invest it. The investment interest is then tax-deductible.
| Feature | Traditional Mortgage | Smith Manoeuvre |
|---|---|---|
| Mortgage interest tax-deductible | ✗ No | ✓ Yes |
| Investing while paying down mortgage | ✗ Sequential | ✓ Simultaneous |
| Annual tax refund | ✗ None from mortgage | ✓ Generated each year |
| Investment portfolio at end of amortization | ✗ Starts from zero | ✓ 25 years of growth |
| Extra monthly cash required | None | ✓ None either |
| CRA approved | N/A | ✓ Fully legal |
Under 30 minutes. Learn the core Smith Manoeuvre strategy used by thousands of Canadian homeowners — at your own pace, completely free.
Access Free Mini-Course →Join Leo live on the fourth Monday of every month for a deep-dive into the Smith Manoeuvre with real client examples and live Q&A.
Register for Next Session →
I'm a mortgage broker, Smith Manoeuvre Certified Professional (SMCP), and licensed real estate agent with over 25 years of experience in Ontario. I became certified in the Smith Manoeuvre because I believe most Canadians are leaving significant wealth on the table by following conventional sequential financial advice.
Every client situation is different — your home value, income, tax bracket, and investment comfort level all affect how the strategy performs for you. My job is to run the real numbers for your specific situation and help you decide if the Smith Manoeuvre is a fit.
Book a Free Strategy Call →Book a free 30-minute strategy call. Leo will run the numbers on your specific mortgage, income, and goals — no obligation, no pressure.
Book My Free Strategy Call →