There are not many people who would not want to:

-Pay off their mortgage more quickly
-Save money on taxes
-Save additional funds for retirement

Through the use of a specialized mortgage strategy called the Smith Maneuver, you can have all of these goals. And you can do them all together!

This strategy is named for Fraser Smith, a financial planner from British Colombia who developed this strategy a few years ago (see the press review). I encountered Fraser in Toronto at a mortgage strategy seminar (there were three mortgage consultants from Quebec).

The strategy uses a mortgage product conceived for this type of strategy that permits one, over time, to make investments or pay business expenses and in this manner lower the interest paid for thus on your taxes. There are many ways to limit risks and to improve the efficiency of this strategy.

This strategy has many components and it is better to discuss it by phone to find the best way to use it in your case. We also use the services of financial planners who specialize in this type of strategy to put together the various components of the strategy. (taux hypothécaire)

Advantages

• Allows you to pay off your home loan sooner
• Allows you to save on taxes
• Permits you to set up a savings plan for your retirement
• Works best for those in high income brackets
• Works best for the self employed, but works for salaried people as well
• The strategy has been tested by financial planners, accountants and tax lawyers
• It is possible to put the necessary home loan for this strategy in place but do not start it too late
• The strategy can be completely automated
• There are no additional charges to put a Smith Maneuver strategy in place

Disadvantages

• It is best for those with a mortgage that is 75% of the home’s value
• The home owner should be in a position to be able to increase his payments by 2% per year
• If you are a salaried employee, it is mandatory to use the investment component, so there will be an investment risk
• The strategy should be used over the longest period, (ten to fifteen years, if possible) so that the investment risk is reduced as much as possible
• The mortgagee should have a good understanding of investments, or he should consult with a professional financial planner

When to use this strategy for the long term

This strategy is usable in many situations, for all types of properties, and for every status of employment. The higher your taxes, the better this strategy works. This strategy can be used with other strategies according to individual requirements.

What does all of this mean to us?

Thanks to Fraser Smith, we are able to answer three critical questions important to our financial lives:

Is there a quicker way to pay off my mortgage?

Is there a way I can reduce my taxes?

Can I put more money aside to save funds for retirement?

This is a wonderful idea, but there are many was the Smith Maneuver can be used, differing from case to case. You should contact us and findthe way that would work best for you.

A mortgage can be a real burden on your monthly budget. If you can pay it off a bit early, you can save a ton of money in interest, and you can release yourself of that stress ahead of schedule. Paying off your mortgage early isn’t as hard as you might think. Here are the best tips for getting the job done before it’s officially due:

Tip #1: Add a few dollars to every payment.
Don’t break your budget, but even if you can only put $5 extra with every payment, do so! $5 may not seem like much, but remember, mortgages are long-term. Over time, those dollars will add up. For example, if your mortgage payment is $1000 a month and you put $10 extra onto every payment, you’ll have paid off a month early in about 8 years. Since mortgages are 15 to 25 years, you can pay off your mortgage two months early over its life! That may not seem like a big difference but as you’re reaching the end, finishing a few months early feels great.

Tip #2: Refinance if the market swings in your favor.
Refinancing isn’t just about pulling money out of your mortgage by cashing in on equity. You can also refinance to lower your interest rate. With a lower interest rate, you can shorten the term, since your monthly payments will also lower. Watch the market. You should refinance when the interest rate is as low as you think it will go. Avoid refinancing more than once or twice because remember, there will be closing costs associated with every refinance. Make sure you calculate these costs into your refinance to make sure that you really will save money.

Tip #3: Don’t miss any payments.
Everyone falls upon hard times financially, but if you’re prepared for it, you shouldn’t have to worry. Save up enough money that you can cover your expenses for about a month. In the case of an emergency, you can turn to this reserved money instead of missing a payment on your mortgage or any other bills. When you miss a payment, not only does it hurt your credit, but it can also be hard to get back on track again, since the following month you’ll owe twice as much. It is a slippery slope, and in addition, you’ll owe more money in fees and interest. Always plan for the unexpected.

Tip #4: Work with a financial professional.
Talking to a professional can really help you save money. Accountants, certified mortgage professionals, and financial advisers often know of tax breaks, mortgage tips, tricks when refinancing, and other ways to help you save money with your mortgage. Every dollar your save can go towards your mortgage, helping your pay off your mortgage more quickly.

Tip #5: Resist the urge to cash in on your equity.
Every time you watch television, you likely see advertisements offering to help you refinance, take out a home equity loan, or apply for a home equity line of credit. These financial tools really make a lot of sense if you need to do home repairs or pay off very high-interest loans. However, doing so will definitely not help you pay off your mortgage any sooner. If it makes sense, then go with this option, but it is very important that you actually need the money. Many people take out loans against their mortgages when they don’t actually need the money. Using this type of loan to purchase designer clothing, a more expensive car, and so forth is just not a good idea.

Tip #6: Make sure that paying off your mortgage ahead of schedule makes sense.
Lastly, before you start throwing extra money at your mortgage lender, make sure that it is a smart financial move. In some cases, it doesn’t make sense. First, you may owe fees if you pay off the mortgage too early. So, if you have a mortgage for 20 years and win the lottery after 2 years, you may want to crunch some numbers to decide when you want to actually pay it off. In addition, check out your interest rate versus the interest rate you’d get if you put the money into a CD, bond, or high-interest savings account. How much would you save in interest every month you pay off the mortgage early? If you put that money into the bank instead, how much money would you make in interest every month? If you’ll make more that you’ll save, it doesn’t make sense to pay off the mortgage ahead of schedule. Do your research to make sure that your mortgage choices make sense!

If you are a homeowner, store owner, or handyperson, here’s a do-it-yourself guide you need to definitely own. Carl VanDertag has developed a helpful and excellent guide about fixing drywall named “DIY: The Ultimate Guide To Drywall Installation.

Carl is an expert, and his expertise and capability shine forth throughout this helpful guide. Clearly written and illustrated, this helpful guidebook will assist you with all kinds of wallboard project, from repairs to whole houses.

Prior to beginning a new drywall undertaking, you definitely should take a look at Carl’s book. From project planning, through taping and seaming, all the way to finishing and cleanup, the steps are simply and clearly written. Rookie and experienced do-it-yourselfers alike will benefit greatly from getting and applying Carl’s guide.

DIY: The Ultimate Guide To Drywall Installation reveals the correct tools for the task, secrets that make your drywalling life easier, and dollar saving hints and tips that will save you hundreds, possibly thousands, of dollars.

For instance, did you know that there is a particular style of drywall for high-moisture places like basements or around shower stalls? “Greenboard” will make your task simpler, and it’s covered in detail in Carl’s guidebook.

There is no other book I’m aware of that reveals drywall in such detail, and with such clarity and simplicity. It’s loaded with photos and illustrations to make your installation smooth as silk. Created with the average homeowner in mind, the drywall guide covers both beginner and professional skills- and everything in between! It will save you hours of time, and lots of money.

Since you have chosen to tackle this crucial homeowner job on your own, shouldn’t you do the smart thing and learn how to do it exactly right, and avoid all those errors so many others make? When your project is finished, won’t it be tremendous to look at it and say with pride, “I did that!”

The Ultimate Guide To Drywall Installation will reveal to you all the tips and tactics you could ever want, and the all important skill of drywalling techniques won’t be a secret to you anymore.