Make Your Mortgage Tax Deductible?

In a nutshell, Making Your Mortgage Tax Deductible employs refined debt conversion techniques to transform mortgage interest into tax deductions. The method has a remarkable snowball effect that
generates large and growing annual tax refunds, and enables the homeowner to knock years off the life of a mortgage and build an impressive financial portfolio at the same time. It is the most
efficient way for families to raise the resources they need to secure both their house and income in retirement.
The benefits you will thereby enjoy accrue because you will begin to get tax refund cheques free each year into the future. You will use these refunds to reduce your mortgage faster so you can
re-borrow and invest a like amount of money. The interest on this loan to purchase more investments is tax deductible and increases your tax deductions even more. It is called a virtuous
circle.

These increasing tax refunds and the investments they purchase are free, as is the growth that results over the years from the magic of compounding values. Free compounding tax refunds are
the first major benefit of this manoeuvre.  Major benefit number two derives from the design of this process that allows you to take an additional advantage from the act of making your monthly mortgage payment, as follows:
Your mortgage payments may be large, but as much as 80% of your payment may be a nondeductible interest payment to the bank for the use of their money. As little as 20% of your first
payment may actually reduce your mortgage. Whatever the amount of principal reduction, The Smith Manoeuvre allows you to re-borrow the amount paid down so you can use it to buy
investments every month. The expectation is that these monthly accruals to your investment portfolio will compound their value over time. The portfolio grows on a compound basis and
remains free and clear because we have arranged that the security for both your house mortgage loan and your investment loan will be your principal residence.

Paying down the bad loan and increasing the good loan leaves your debt constant at the original level of your first mortgage while the conversion proceeds each month. The bad debt melts away
to be transformed into good debt. Your free and clear investments will be a reserve during the conversion years, and a retirement fund when it's time for you to slow down.
The contribution to your net worth represented by the tax deductibility process may be about one third from tax effects and two thirds from portfolio growth. These benefits are free to you.
You may also wish to increase the down payment of your mortgage (bad debt) by applying your tax savings to the loan. As well, you can further create additional wealth by applying all
investments to the program.

For more information regarding Making Your Mortgage Tax Deductible,  contact John Klotz.
John is President of Northwood Mortgage Life and can be reached at (416)-969-8130 ext. 230.