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Copyright 2026 - All rights reserved. Paragon Pragmatic Lending.
Information is general and not legal, tax, or investment advice. Strategies like the Smith Manoeuvre (Maneuver) and cash or rental damming involve risk. Consult a qualified tax professional.
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Smith Manoeuvre

Project deductible interest, HELOC growth, and investment returns for a readvanceable strategy.

Save + compare

Unlock the full calculator suite

Create a free account to save scenarios, compare options, and share results with your broker team.

  • Save unlimited scenarios and track changes over time
  • Compare rate options side by side with broker feedback
  • Export reports for underwriting or renewal planning
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Mortgage balance currency$

Outstanding mortgage balance before re-advancing principal.

Monthly contribution currency$

Optional extra investment advanced from the HELOC each month.

Adds HELOC interest to the balance instead of paying from cashflow.

Used to estimate annual refund on deductible interest.

Smith Manoeuvre

Map principal re-advances, capitalized interest, and projected refunds for your strategy.

Save scenario

How this calculator works

Model debt recycling and potential tax deductibility over time.

Use it for scenario planning with professional tax advice.

Inputs you will need

  • Mortgage balance and rate
  • Marginal tax rate
  • Investment return assumptions
  • Readvanceable draw plan

Assumptions and limitations

  • Assumes consistent investment returns.
  • Tax outcomes vary and require professional advice.
  • Interest deductibility rules can change.

Example scenarios

Conservative return scenario

Use a 4% return to stress-test the strategy.

Aggressive repayment

See how faster mortgage paydown accelerates recycling.

Related tools

HELOC plannerReadvanceable mortgagesHELOC service

Save and compare scenarios

Create a free account to save scenarios, compare options side by side, and share results with your broker team.

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Frequently asked questions

Is this tax advice?

No. Always consult a qualified tax professional.

Do I need a readvanceable mortgage?

Yes. The strategy depends on a readvanceable structure.

Is the Smith Manoeuvre risky?

It involves leverage and market risk. Only proceed with full guidance.