What is the Smith Maneuver?

In the 1980s, financial planner Fraser Smith developed the Smith Maneuver - a strategy designed to help Canadians pay off their mortgage faster and build equity more quickly. In a nutshell, it is a type of refinance that allows homeowners to access the equity in their home to pay off their mortgage faster and invest in a tax-sheltered investment account. The goal of the Smith Maneuver is to help Canadians become debt-free and financially independent sooner.

What is the Smith Maneuver?

The Smith Maneuver is a financial strategy that can be used by Canadian homeowners to pay off their mortgage faster and achieve financial independence.

The Smith Maneuver involves using the equity in your home to pay off your mortgage balance. This can be done by taking out a line of credit against your home equity and using the funds to pay off your mortgage balance.

By doing this, you will be able to save money on interest payments and will be able to pay off your mortgage faster. This will also allow you to build up equity in your home faster, which can be used for other purposes such as investing or taking out a second mortgage.

If you are considering using the Smith Maneuver, it is important to speak with a financial advisor to see if it is right for you.

What are the benefits of the Smith Maneuver?

There are several benefits of the Smith Maneuver. First, it allows homeowners to pay off their mortgage faster. Second, it helps them build equity in their home more quickly. Third, it gives them the opportunity to invest their money in other areas, which can lead to financial independence.

The Smith Maneuver is a great way for Canadians to become financially independent. It is simple to implement and has many benefits. Homeowners who use this strategy will be able to pay off their mortgage faster, build equity in their home more quickly, and invest their money in other areas.

How is the Smith Maneuver performed?

The Smith Maneuver is a mortgage strategy that can be used by Canadian homeowners to achieve financial independence. The strategy involves paying down your mortgage faster than required, and using the equity in your home to invest in other assets.

To perform the Smith Maneuver, you will need to make regular, accelerated payments on your mortgage. You will also need to open a line of credit, which will be used to pay off your mortgage balance. The line of credit can then be used to invest in other assets, such as stocks, bonds, mutual funds and even real estate.

The key to success with the Smith Maneuver is to invest the money from your line of credit wisely. If done correctly, the strategy can help you achieve financial independence and build wealth over time.

We highly recommend you to purchase the book on this strategy. There is a lot to it than what we can write here in this article. The book is available in Amazon as well as the official Smith Maneuver site ran by Robinson Smith (Fraser Smith’s son). In their site, you can also find certified financial professionals who are very knowledgeable and can help you apply the strategy tailored to your needs and circumstances.

What are the risks of the Smith Maneuver?

When it comes to mortgages, there is no one-size-fits-all strategy. The Smith Maneuver is a popular strategy in Canada that can help some people achieve financial independence sooner. However, there are some risks to consider before using this strategy.

One of the risks of the Smith Maneuver is that if the value of your investments falls, you could end up owing more money than you originally borrowed. Additionally, if interest rates rise, you may find yourself having to pay more in interest compared to the original fixed-rate mortgage.

All investment strategies involve some level of risk. This risk, combined with the use of leverage, can be extremely high with a strategy like the Smith Maneuver, depending on your time horizon and other factors. Before making any investment, consider your risk tolerance and financial goals, and consult with your advisor.

Conclusion

In conclusion, the Smith Maneuver is a powerful tool that can help individuals pay off their mortgage faster and become debt-free sooner. Although it requires some financial discipline and planning, the long-term benefits are worth the effort (in our view). For anyone looking for ways to make their money work more for them, the Smith Maneuver may be worth exploring.