The Smith manoeuvre

Unlike in the U.S., the interests on your primary residence's mortgage are not tax deductible in Canada. 

The Smith Manoeuvre - from Fraser Smith - consists in borrowing against the equity built in your house to invest in income producing vehicles. The interests can be written off from your taxes.

This way, you can gradually restructure the largest non-deductible debt of one's lifetime (a mortgage) into a deductible investment loan.

Why should you invest your RRSP money into real estate?

There are 3 main reasons to invest your hard-earned RRSP money into real estate:
- the money is secured against real assets,
- the interests earned are collected on a tax-free (TFSA) or tax-deferred basis (RRSP),
- real estate has outperformed the stock market for the past 10 years and, unlike stocks, the growth is steady.

Canada Stock Market 2006-2015

Historical Index Values Toronto 2006-2015