Sprout IQ · Private proposal
Enter your password to view the Miriam’s Mortgages proposal
Skip to booking
Proposal · Draft This is a private preview for Miriam’s Mortgages. Nothing is live or public until you approve it.
Miriam’s Mortgages Simply smarter support

The Smith Manoeuvre · North York

Turn the interest on your mortgage into a tax deduction.

Americans can write off their mortgage interest. Canadians cannot. The Smith Manoeuvre is the recognised way around that: as you pay the mortgage down, you borrow that room back to invest, and the interest on THAT borrowing is deductible. It only works if the mortgage is built for it from the start. That part is mine, and your accountant runs the tax side.

  • 5.0 on Google, 74 reviews
  • Mortgage Agent Level 2
  • No cost, no obligation
See if the structure fits me Call 647-274-9680
Miriam Essebag, Mortgage Agent Level 2, North York
Miriam Essebag Mortgage Agent Level 2 · License# M1900073

The Smith Manoeuvre

How a Canadian mortgage becomes deductible

It is a real strategy with real requirements. It is not for everyone, and the mortgage has to be built for it before anything else happens.

  • 1

    It only works on the right kind of mortgage

    You need a mortgage paired with a credit line that grows as you pay the principal down. Without that structure underneath it the strategy does not run at all, which is why this starts as a mortgage conversation rather than an investment one.

  • 2

    The deduction comes from how the money is used

    Interest becomes deductible when the borrowed money is used to earn income. The trail from the credit line to the investment has to be clean and traceable, which in practice means a dedicated account and no personal spending from that line.

  • 3

    It uses leverage, so it cuts both ways

    You are investing with borrowed money. That can work in your favour over a long horizon and it can work against you in a bad one. This is exactly why the tax and investment side belongs with your accountant and your advisor rather than with your mortgage agent.

Ontario-licensed · License# M1900073. Miriam compares options across a range of lenders through Mortgage Outlet Brokerage, at no cost to talk and no obligation to proceed. Serving North York, Toronto, Vaughan, Brampton and Innisfil.

Miriam Essebag, Mortgage Agent Level 2, License# M1900073. Brokerage: Mortgage Outlet Brokerage, Brokerage License # 12628. Rates and terms are not guaranteed and are confirmed directly with Miriam and the lender. Approval depends on your full application and the lender's own criteria. Nothing here is financial or legal advice.

Frequently asked questions

Is this actually allowed?
Deducting interest on money borrowed to earn income is long standing in the Income Tax Act. What matters is that your structure and your record keeping match the rules, which is your accountant’s territory. My job is making sure the mortgage is set up so the structure is possible at all.
Do I need to change lenders?
Sometimes. Not every lender offers a readvanceable product, and the ones that do differ in how the credit line readvances as you pay down. If your current mortgage cannot support it, a renewal or a refinance is the natural moment to move.
Who is this not for?
Anyone who would lose sleep watching a leveraged portfolio move, anyone likely to need that equity for something else soon, and anyone without an accountant to run the tax side. If that is you, I will say so directly rather than set it up anyway.
The Smith Manoeuvre

Request a callback

Leave your details and Miriam’s Mortgages gets back to you directly to set up a time that works for you.

  • 5.0 on Google across 74 reviews
  • Mortgage Agent Level 2, License# M1900073
  • Mortgage Outlet Brokerage
  • No cost to talk, no obligation

Prefer to talk? Call 647-274-9680.

Send your details

Leaving your details is all it takes. Miriam’s Mortgages reaches out to you directly.