The Debt Swap
What if your mortgage could also accelerate your investing – without earning more, saving more, or changing your lifestyle?
That’s the power of the Debt Swap: a strategy that keeps you fully invested while converting your mortgage into tax-deductible investment debt.
Many Canadians feel “house poor.” Their net worth is tied up in their home, leaving little room to invest – all while paying thousands in non-deductible mortgage interest using after-tax income. The Debt Swap changes that dynamic.
By cashing in existing non-registered investments, using those funds to pay down your mortgage, and then immediately re-borrowing to repurchase suitable investments, you unlock home equity without losing market exposure. Your mortgage shrinks, and the interest on the newly created investment loan becomes tax-deductible.
This works through a re-advanceable mortgage (and/or an Offset structure), where every dollar paid down becomes instantly available to re-invest. No waiting, no extra savings required – just a seamless, CRA-compliant flow that accelerates both wealth creation and tax efficiency.
More Canadians are using this strategy to break free from the “house-poor” trap and build real financial flexibility — often without increasing their monthly outlay. But it must be implemented properly, with the mortgage structured by me and coordinated with the right financial advisors. If you’re curious how the Debt Swap – and broader Smith Manoeuvre strategies – could transform your finances, I’d be glad to walk you through it.