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Smith Manoeuvre

A crazy ass way to get your “mortgage interest” tax deductible

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Is the Smith Manoeuvre Still Worth It? A Canadian Perspective

The Smith Manoeuvre is a controversial Canadian tax strategy that converts non-deductible mortgage interest into tax-deductible investment loan interest. This article explores the basics of the Smith Manoeuvre, discusses why some financial professionals caution against it, and reflects on how interest rates and risk tolerance influence its viability. Originally written in 2007, this piece remains relevant today as more Canadians look for aggressive tax strategies. We also explore what insiders joke about behind the scenes and why many DIY investors misunderstand the complexity and risk behind the maneuver.

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