How a Smith Manoeuvre Mortgage Can Save You a Fortune

Your home mortgage loan can sometimes seem like a burden that you have to bear in order to build equity, worth and money for your future. But the truth is that many home loan lenders aren’t clueing you in to how your home mortgage loan can generate hundreds of thousands in cash right now without causing a rise in your payments.

Fraser Smith, an author and real estate guru, wrote a strategy guide about his method for capitalizing on your home’s accrued value called the Smith Manoeuvre.

The Smith Manoeuvre works by helping you to make payments and then borrow against the portion that went to your principal immediately through a HELOC, or Home Equity Line of Credit and the best part is, your low interest rates stay the same.

So if $300 of your first mortgage payment goes to your principal, then you immediately have $300 in your Home Equity Line of Credit that you can borrow against.

According to the Smith Manoeuvre, each month, you make your payment and then use your Home Equity Line of Credit to borrow the amount paid on the principal, which you then place into a mutual fund, stocks or other quickly growing assets. The best part is, any money you borrow through your Home Equity Line of credit that is used for investment purposes is also a tax deduction. Paired with your the low interest rates you’ll have now on your new home mortgage loan, you can beat the savings any other way.

By utilizing the Smith Manoeuvre in your real estate planning, you will not only be able to pay off your mortgage sooner but you will also save up and create more than enough money to pay back your mortgage at least one more time.

If you’re interested in using your low interest rates mortgage to your advantage with the Smith Manoeuvre, contact us today to get started.