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Strategies · Canada

Borrowing to invest, described mechanically

Each strategy here is written the way it actually runs — which account the money moves through, what the paper trail has to show years later, and how the arithmetic compares against not borrowing at all. The mechanics are the same for everyone; whether any of it suits your circumstances is a question for a qualified professional, not a web page.

Cash damming for rental and business income

The debt conversion for owners of rental property and the self-employed — which account each expense leaves from, where the trail breaks, and what it is worth.

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Cash damming vs the Smith Manoeuvre, and which one your income allows

Two Canadian debt conversions compared on eligibility, risk, speed and paperwork — with both calculators, and no thumb on the scale for either of them.

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How the Smith Manoeuvre works, month by month

The month-by-month mechanics of the Smith Manoeuvre — which account each dollar moves through, what the lender does automatically, and what you have to do.

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Smith Manoeuvre record-keeping, and the limits of a spreadsheet

What a Smith Maneuver spreadsheet tracks well, what it cannot evidence, and the record each draw needs if the interest claim is to survive a review years later.

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Smith Manoeuvre risks, and when the strategy does not make sense

Pros and cons of the Smith Manoeuvre without the brochure — leverage, rate and sequence risk, the deduction lost to bookkeeping, and who should skip it.

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The Smith Manoeuvre, account by account

The Canadian strategy that turns mortgage debt into deductible investment debt, described account by account — what it needs, what it returns, where it fails.

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Most readers arrive having heard of one of these already — converting a mortgage into deductible investment debt is the one with a name attached to it. The same conversion for people with business or rental income needs no portfolio and no new borrowing appetite, and it is the one more households turn out to be eligible for.