PAY YOUR MORTGAGE OFF UP TO 50% FASTER

TAX DEDUCTIBLE MORTGAGE STRATEGY

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What if there's a way to pay your mortgage off 50% faster
without increasing monthly payments or cash flow? 
the tax deductible mortgage strategy:

The two highest expeneses that Canadians often have is the income tax and the interest that they pay.  

This strategy helps Canadians reduce these two expenses by converting their mortgage interest into a tax deductible expense.  This in turn provides additional tax refunds simply by making their regular mortgage payments.  Also, by directing these tax refunds as prepayments towards their mortgage, our clients are essentially using their income tax dollars to become mortgage free much faster!

FREQUENTLY ASKED QUESTIONS:

What happens if interest rates rise?

Because your mortgage is becoming more and more tax deductible over time, there is a natural hedge should interest rates being to rise.  The higher rates increase the more tax deductions you will receive within this strategy.  This is very different in comparison to a traditional mortgage where the borrower is exposed to 100% of the risk of rising interest rates.  However, we always ensure that our strategies are locked in at rates that are the most advantageous possible. For example, if we can lock in the investment lending portion into a 5 year term, this will help stabalize the strategy for a defined period of time.

What happens when my mortgage becomes fully tax deductible?

This is what we call "mortgage converstion date."

It is the moment that your entire mortgage has become tax deductible.  You are not done at this point, as we need to now reach your "mortgage freedom date."

This is the date that the total level of investment assets matches the total level of debt within the strategy.  The journey to mortgage freedom involves the repositioning of the mortgage into an efficient standard mortgage.  Only difference is now, at this point going forward, you will receive tax deductions from simply making your mortgage payments.

What are the costs to break my mortgage mid-term?

This will vary depending upon a number of factors.  The minimum cost is usually 3 months interest, which is always favourable to pay in order to enter into this strategy more quickly.  However, should interest rates be more favourable currently, there may be an interest rate differential calculation take affect.  

Our team will assist in the calculation of these exact costs so that you are 100% certain that is the most suitable time to consider entering into the strategy.

How does this strategy affect my accounting & tax filing?
What happens if CRA challenges my interest deductions?

We strongly suggest that you engage our team for your accounting and tax filing when entering into this strategy.  

Our clients enjoy a zero cost service for both managing and esponding to any future CRA inquries for this strategy or any other matter should you decide to engage in using our accounting and tax division for filing your taxes.


We have had dozens of successful CRA reviews / inquiries in the past.  Because we are fully aware of what may be requested for review, our team always plans ahead. Every year we gather all the documents required to support your tax deductions and store them in an organized manner in preparation for a possible review.  This practice alone saves our clients hours of unnecessary work and quite possibly thousands of dollars in additional costs.

Knowledge
is the
true power.
-  Todd McLay  
Q1: What goes here? 

It is staggering how many Canadians are unaware of what is actually possible with respect to building and protecting wealth. We know it all starts with knowledge. Because, you simply cannot change what you do not see.  

Q2: What goes here? 

It is staggering how many Canadians are unaware of what is actually possible with respect to building and protecting wealth. We know it all starts with knowledge. Because, you simply cannot change what you do not see.  

Knowledge
is the
true power.
-  Todd McLay  

Discover More Strategies

Tax Deductible Mortgage Strategy
Risk Parity Investment Strategy
Tax Maximizer Strategy

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