The Smith Manoeuvre Strategy
The Smith Manoeuvre is a powerful, legal tax strategy in Canada that allows homeowners to make their mortgage interest tax-deductible. By wisely leveraging the equity in your home, this method allows you to accelerate your mortgage repayment while simultaneously growing your investment portfolio.
Wise Equity is proudly Smith Manoeuvre certified, and we provide expert guidance throughout the process to help you fully capitalize on this transformative wealth-building strategy.
how it works:
Step 1 Readvancable Mortgage
investments, such as stocks, bonds, or real estate, can generate returns that outpace borrowing costs, helping you grow your wealth.
Step 2 Make Mortgage Payment
By using these borrowed funds with the intent to generate income, the interest on the loan becomes tax-deductible.
Step 3 Access Home Equity
The interest on the investment loan becomes tax-deductible, lowering your taxable income, resulting in a tax refund.
Step 4 Generate Income
You can then apply that refund toward your mortgage, which increases the equity available for further borrowing and investing.
Step 5 Enjoy Tax Refunds and Repeat
This creates a cycle where you reduce your mortgage faster and grow your investment portfolio at the same time.
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Benefits of The Smith Manoeuvre
Accelerated Mortgage
Payoff
Speed up the repayment of your mortgage by using tax refunds and investment returns to make additional payments.
Enhanced Investment
Growth
Utilize borrowed funds to invest in a diversified portfolio, potentially increasing your overall investment returns and building wealth more rapidly.
Increased Cash Flow
Optimize your cash flow by converting non-deductible debt into deductible debt, freeing up additional funds for savings or investments.
Increased Net Worth
By combining mortgage repayment with investment growth, you can enhance your overall net worth and achieve greater financial security in preparation for retirement.
Inflation Protection
Invest in assets that may appreciate over time, offering a potential hedge against inflation and preserving your purchasing power.
Self-Employed Income Tax Reduction Strategy
As a self-employed individual, optimizing your tax strategy is essential to minimizing costs and growing your wealth. One highly effective approach is the Self-Employed Income Tax Reduction Strategy, which allows you to use your business revenue to both pay down your mortgage and increase your investments.
how it works:
Leverage Business
Revenues

As a proprietor, you can use the revenue from your business to make additional mortgage payments. This helps reduce your non-deductible mortgage debt faster, freeing up more funds over time for other financial goals.
Maximize Surplus
Income
After covering your business expenses, any surplus revenue can be strategically reinvested. By channeling these surplus funds into investment opportunities—such as stocks, bonds, or rental properties—you’re not only paying off your mortgage faster but also actively growing your investment portfolio.
Tax-Deductible
Interest
When you re-borrow to invest, the interest on those loans becomes tax-deductible. This reduces your taxable income, meaning you can lower your tax bill while continuing to invest and build your wealth.
The Benefits:
Accelerated
Mortgage Payoff
As a proprietor, you can use the revenue from your business to make additional mortgage payments. This helps reduce your non-deductible mortgage debt faster, freeing up more funds over time for other financial goals.
Increased
Investment Portfolio
After covering your business expenses, any surplus revenue can be strategically reinvested. By channeling these surplus funds into investment opportunities—such as stocks, bonds, or rental properties—you’re not only paying off your mortgage faster but also actively growing your investment portfolio.
Tax Savings
The strategy converts non-deductible personal mortgage debt into deductible investment debt, lowering your tax burden each year. The tax savings can then be reinvested, creating a cycle of wealth accumulation.
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