Photon, the saving is between deductible and non deductible interest expnse. HELOC or mortgage interest are normally not deductible in Canada and the Smith Maneouver is an attempt to make this interest tax deductible. So the saving at the top AB tax rate is, in my example, 3.5% (HELOC rate) X39% (tax rate)=1.365%.
There'll be added costs and leverage risk to run a scheme like the Smith Maneouver so your net saving is going to be less than 1.365% in my example.
If you belong to the lower tax bracket, your savings are going to be even less than that.
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