Good morning all,
Can anyone tell me if I can make the below work for my first mortgage, or would I need a large amount of assets to sell first?
Is the smith maneuver what the wiki article below is referring to?
Quote:
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An indirect method for making interest on mortgage for personal residence tax deductible in Canada is through an asset swap, whereby the homebuyer sells his existing investments, purchases a house in full or in part by the sale, gets a mortgage on the house, and finally, buys back his investments with the money from the mortgage. The Supreme Court of Canada has ruled in 2001 in the Singleton v. Canada case [1] that transactions in the asset swap are to be regarded as distinct, thus rendering the interest on home mortgage acquired as part of the asset swap tax deductible
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Thank you!