Tax Deductible Mortgage

tax deductible mortgage
Is Your Mortgage Tax Deductible?

How to get Tax Refunds from your mortgage every year

Did you know American homeowners can tax deduct their mortgage interest? This is not the case in Canada, but with good financial planning and the right mortgage structure, homeowners are now able to collect Tax Refunds.

A Tax Deductible Mortgage is designed to generate Tax Refunds using the same cash flow as your mortgage payments. This technique has become increasingly popular since the introduction of specific mortgage products from many major lenders. These mortgages may be offered in bank branches, but the expertise to set it up, run it and stay within the Canada Revenue Agency guidelines is not always available.

The average homeowner spends $1,000’s every year on interest! If it was tax deductible, tax deductions would be substantial depending on the tax bracket. Over 25 year mortgage it could be a small fortune in savings and tax refunds!
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Does It Really Work?

Jonathan Chevreau, one of Canada’s leading personal finance journalists reports:

“It may be nothing short of a revolution.” “.. each dollar knocked off principal is pumped back into a loan to buy investments, the interest on which is tax deductable. Gradually, the mortgage falls to zero and the investment portfolio soars…”

Strategy looks like a revolution: Making your mortgage tax-deductible
National Post
Wednesday, August 23, 2006
Article published by permission

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    Disclosure

    Disclosures Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Segregated fund may have various maturity and death benefit guarantees but care should be taken to read the Information Folder in order to determine specific details for the funds you purchase. The term “Tax Deductible Mortgage” is descriptive of a strategy where a client’s situation is restructured to make mortgage payments tax deductible. The mortgage and/or mortgage interest is not normally deductible, you must structure it to make it deductible. The “Tax Deductible Mortgage” strategy involves using borrowed money to finance the purchase of securities. This strategy involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest, as required by its terms, remains the same even if the value of the securities purchased declines. All calculations and results are for illustrative purposes only. Actual results will vary.