Submitted by: Gregory Van Duyse
If you are interested in
– Paying down your mortgage faster (taux hypothcaire)
– Reducing taxes
– Preparing for retirement
And who wouldnt be? Read on.
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 hypothcaire
The strategy is named for a British Colombia financial planner, Fraser Smith. He developed this interesting home loan strategy a few years ago (see the press release). I had the good fortune to hear Fraser give a speech about it at a recent conference in Toronto, where I was one of three mortgage consultants from Quebec.
This strategy, formed for a mortgage product that can expressly use it, allows the mortgage holder to make an investment or pay business expenses and, over time, achieve a tax benefit from the related interest expenses. There are a number of ways in which this works, but if it is approached in the right manner, you can limit your risk while increasing how efficiently the strategy works for you. There are many parts to this strategy, so it is best that you phone and discuss your individual circumstances and how they can be addressed using this strategy. We work with financial planners who can analyze your financial needs and put the right package together for you – taux hypothcaire.
Advantages
Pay down your mortgage faster
Reap tax savings
Save for retirement
Best for high income people
Best for self-employed, but can be utilized for salaried employees as well
Has been approved by tax lawyers, accountants and financial planners
You can begin the strategy any time, but the sooner the better
It can be set up on an automated program
There are no additional fees to be paid
Disadvantages
It is best for those with a mortgage 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 component is used (mandatory in the case of a salaried employee), there is always the risk associated with the investment
In order to lower the risks associated with the investment, this strategy 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 assistance of a financial planner
How to use this strategy for the long term
There are many ways to work with this strategy, applying it to each situation, each type of home loan and each status of employment. The higher your taxes are, the better the strategy works. You can use this strategy in combination with other mortgage strategies depending on your own needs – taux hypothcaire.
What is our conclusion?
Thanks to the work of Fraser Smith, we now have help in addressing three important questions that concern many of us:
– Is there a way to pay down my mortgage more quickly?
– How can I reduce my taxes? – taux hypothcaire
– Are there ways that I can accumulate additional funds for retirement?
This is a wonderful idea, but there are many was the Smith Maneuver can be used, differing from case to case. Your best bet would be to contact us and learnthe way that would work best for you.
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