Tax Talk Podcast
A monthly podcast with a wide range of guests focused on helping Canadian small business owners make decisions surrounding incorporation, growing their business efficiently, and implementing successful succession, estate planning & tax planning strategies.
Tax Talk Podcast
Build Wealth With Your Mortgage | EP 56
Canadian homeowners: what if your mortgage could help you build wealth, reduce taxes, and help you pay off your mortgage sooner—without increasing your monthly payments?
In this episode of the Tax Talk Podcast, I sit down with Nick Cox at The Smith Manoeuvre to break down how Canadians can convert non-deductible mortgage interest into tax-deductible investment interest using a re-advanceable HELOC. You’ll learn the “Plain Jane” foundation, the five accelerators, who this strategy fits best, real risks to watch for, and how to implement it properly with professional guidance.
What you’ll learn:
- What the Smith Manoeuvre is
- The “Plain Jane-core” process with a re-advanceable HELOC
- The five accelerators (Debt Swap, Cash Flow Diversion, Cash Flow Dam, DRIP, Prime the Pump)
- Why non-registered, income-producing investments are essential
- How tax-deductible interest, refunds, and compounding can accelerate wealth
- The mortgage freedom date and the psychology of good vs. bad debt
- Key risks: implementation, market, and liquidity, and how to mitigate them
- A powerful tip for rental property owners: the Cash Flow Dam
Do you have questions about what was discussed in this episode, or maybe you have another question about accounting or tax planning? Leave them in the comments—I’ll send you a response, or we can tackle them in future episodes. Subscribe for more Canadian tax and wealth strategies:
Find us at:
https://www.legacyllp.ca/
reception@legacyllp.ca
Need to get in touch with Nick?
Nick Cox
The Smith Manoeuvre
#buildingwealth #mortgagepayments #taxplanning
Timestamps
00:00 Kicking it off
00:45 Overview of the episode
01:18 What is the Smith Manoeuvre?
02:40 First step in the Smith Manoeuvre: the Plain Jane
10:24 You don't need that additional cash output
15:42 Concerns around holding HELOC debt
21:16 A long term strategy
22:46 The 5 Accelerators
27:36 Who would be the best fit to take on the Smith Manoeuvre?
36:28 Know the risks of this mortgage payment process
39:24 Top benefits of the Smith Manoeuvre
40:49 Wrapping it all up
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