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Smith Manoeuvre

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

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Interactive calculator

Smith Manoeuvre

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

Calculation notes

Methodology for the smith manoeuvre

Model debt recycling and potential tax deductibility over time.

Use it for scenario planning with professional tax advice.

Inputs to check

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

Assumptions

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

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

Use this payment output in the next decision

Payment and amortization scenarios matter most when they connect to a rate, a contract strategy, and a broker-reviewed fallback plan if rates move or priorities change.

Guides

Read the Canada-specific playbook before you commit to the next step.

Execution

Use the broker workflow, rates pages, or secure dashboard to move from estimate to action.

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.