It’s a Smitty plan lol . 😂 I’ve been doing this for years haha . I would love him to update with the new underused properties and the higher interest rates . Soon homes and especially commercial properties will be in foreclosure

What happens to the investment loan? When does that get paid down?

This is a gem! Thanks for the part 2 interview, Darren. I'm definitely going to be reading the book and talk to a certified Smith Manoeuvre Mortgage Broker to assess my circumstance. Thank YOU! 🙏🙏🙏

This content is mind blowing. Thank you guys so much for sharing this with me.

you just saved thousands of years worth of people's life. Thank you!

This is really good stuff. I just sold a property in Cochrane and moved the family back to the Lloydminster area. We had a 6 figure profit and all credit debt paid off. Really think this style of financial vehicle is smart and looking forward to educating myself more. thank you for sharing!!

Thanks Darren and Rob! I may be mistaken, but don't some of these accelerators only work if your HELOC is only a certain amount higher than your mortgage rate? Eg. If my mortgage rate is 1.35%, HELOC rate is 2.95%, and marginal tax rate is 50%. I'd be swapping my non deductible interest of 1.35% for 50% deductible interest at 2.95% so would end up paying more interest even after my tax deduction and there would be no change to the cash flow available to invest.

Could you help define 'rental receipts' (I assume this is incoming rental deposits from my rental tenants?) and 'rental expenses" (is this the mortgage payment or is this repairs, vacancy + mortgage payment?). I didn't find it was very clear what receipts and expenses includes in the Cash Flow Dam. Thanks for sharing, this is really great information.

Bought his book earlier this year and had studied it. Will be implementing this strategy soon for sure! Also waiting for the course he promised

This might be a really dumb question but don't you have to pay off the line of credit eventually?

Smith mentions the amount borrowed from line of credit to be invested. What would be the typical investments look like?- Stocks, REITs? CRA mentions that you cannot claim interest rate charged if your investments only generated capital gains. Can someone wiser answer this please. 🙏🏽

Darren, you deserve more subscribers. Thanks. Is this something you you implement for every rental you own?

8:26 this is above and beyond the normal payment.... so if I get $2000 in rent and I put that as an extra payment on my mortgage, a couple weeks later when my mortgage needs to be pay $1600, where does that money come from?? I'm just supposed to have an extra $1600 per month laying around?

Awesome perks. I'm buying the book. I want you in my inner circle.

Okay great, so how do you pay off that ever growing HELOC or LOC?

The 2nd part was very interesting. However, if I take my $3000 rent cheques and put it on my mortgage to bring it down and then take out the same $3000 to pay all my rent expenses, I have to pay interest on that $3000 taken out of my HELOC at 2.95% right now (prime 2,45% + 0,5%) but my mortgage is at 2,54% so would this not cost me more in interest? I cannot deduct the interest on my HELOC if I am using it to pay my rental expenses? thanks Richard

unbelievable content! planning on being mortgage free in 2 more years so this is something we are looking at to build up our portfolio

Fantastic presentation. Thank you

13:20 The text on the screen says you invest the difference between the rental income and the expenses. But in the example he put the entire rental income ($3,000) on the mortgage. How do the expenses get paid then? Is it because the whole $3,000 goes to principal (because it's a prepayment) and that gets loaned back to him?

Where should we invest that money? Any video explaining that part?

Amazing! thanks so much

Would it make sense to max out my TFSA account before I start the Smith maneuver?

my mortage bank will only calculate every 6 months for my mortage pricinples and interestes. I have no choice to do the extra payments to my mortagage monthly if I have extra money.

Which part is tax deductible ? Is it the interest paid on the borrowed amount from HELOC OR the entire amount taken from HELOC ? At present the HELOC rate is 7%. Does it make sense to borrow and invest ? If so, which investment, that can earn more than 7% ?

Hi Darren, I'm from Vancity also, I didn't quite get if Mr Smith, do exactly, will he advice personally or does he Broker a loan? And how can I contact him directly. Thank you, Domingo

This Smith Maneuver strategy is so cool and tempted to apply on my new rental property mortgage. Let me give an example as below: My property value - $800,000 Mortgage amount - $600,000 Now I have $40,000 in HELOC ($800,000*80% - $600,000). Can i use this Heloc money for increase frequency of my Monthly mortgage to weekly mortgage with double payment and $20,000 annual prepayment without investing on any high interest investment? Based upon above scenario, I will get some tax refund based on the Heloc interest and also # of mortgage years will come down faster. Is it works with Smith Maneuver strategy and save money in the long run ?

Super!!!!! Thanks

Does this maneuver work with 5% down payment on a property ?

Excellent!

Thank for a great video

Would this work for someone that no longer has the oil company job and is now semi retired?

No words how to thank you. Great presentation and giving us the key to our life. THANKs

if you have extra money to invest, how can you get 7% retrun? the bank interest rate is under 2% now for 5 years fixed. why the banks could not get that 7% return for their money? Mutual funds or stocks are not secured invests.

How do I get the calculator?

Hi Darren, have you tried the smith maneuver? I am new to all this. I am currently looking at getting into my first rental property. Is this something that would be a benefit on a rental property? I have been doing lots of research but it depends what you come across everyone has different strategies. My ultimate goal is to start small with a rental and BRRRR here in Alberta. I’m from central Alberta so plan to do most of my investing in central Alberta. Just starting out there is so much information to take in. My goal in the end is to have as many rental properties as I can by the time I retire. I obviously don’t know all the ins and outs and have watched about 3 of your videos now here on KZfaq. I appreciate every one of them so thanks for that.

Hey great video! Is the interest from the LOC serviced by the investment income? I'm assuming this only works if you're earning a higher interest rate from your investments than the interest rate of the LOC?

Amazing strategy.

I had Manulife. We need the rest of the info. I’m not there now.

Australians have been doing this for decades but we call it debt recycling.

I am confused with @8:30 where it says put the rental income of $2k back into the non-deductible mortgage loan, then take that $2k out to pay for rental expenses. Isn't rental expenses tax deductible already? or if you take HELOC out to pay for the rental property mortgage principle payment that would include it as an expense?

Could you connect or provide the telephone no’s of those professionals that I could to talk to in connection with these video?

👍👍