What is a Tax Deductible Mortgage?
What is a Tax Deductible Mortgage
Unlike in the USA where the tax deductible mortgages are viewed by most as a basic human right, Canadian tax laws view your home as a consumer purchase and any interest paid on your mortgage is not tax deductible. Now, it is possible to convert your non-tax deductible mortgage interest into tax-deductible investment interest. In the process, you will shave MANY YEARS off of your mortgage.
Here’s how a Tax Deductible Mortgage Works:
Convert your mortgage into a tax deductible investment loan
The Tax Deductible Mortgage Plan (TDMP) allows you to convert your mortgage into a tax-deductible loan. In turn, you convert the interest into a tax deduction, which for many people will generate a Tax Refund.
By converting your mortgage into a tax-deductible loan, you are turning the interest into a tax deduction. When you subtract that deduction from your income, you get a tax refund. That refund is Free money. You do not have to invest any of your own income or increase your debt to get the tax refund. Conversely, the refund you receive from investing in RRSPs is not free money. You pay for your RRSP by using your own after-tax income to buy the tax refund.
View this online video seminar for an introduction to how it is done.
To Qualify, You Should Have At Least 20% Equity In Your Home.
Do You Qualify?
The best way to know if TDMP is right for you is to complete the TDMP Test and get your Free Benefits Analysis Report. Once this is complete, we will contact you to let you know if you qualify for the plan.
Here are a few basic guidelines:
First off, you should currently own a home and have built up at least 20% equity. It is possible for new buyers to qualify, but this will require a personal consultation.
Your outstanding mortgage balance should be at least $100K and you should be employed (or self-employed) with good credit.
Your Team
Just like with a regular mortgage, you need a team of professionals that will help you set-up and run your Tax Deductible Mortgage Plan. Your team of advisors includes:
- You
- Randy McGuire – TDMP Certified Mortgage Professional
- TDMP Cash Management Team
- Tax Accountant
As your Mortgage Advisor, I will help you set up a Tax Deductible Mortgage and introduce you to the other necessary members of your team.