ManuONE, be Mortgage free yrs sooner instead of 25.

DRock

DRock

Legacy Member
We can review your options on how to buy a house. and set you up with a unique mortage account!!

Everyone will be different but, depending on your personal circumstances, I can show you how to be mortgage free in 6-10 yrs instead of 25

I'm on my way to doing exactly that.
With ManuONE
www.manulifebank.ca

and several members who have already set theirs up

very interesting.
 
Last edited:
Holo said:
wow good work Anthony very interesting section
2 thumbs up
Click to expand...


hey there,

thanks man, if you need any financial info, I'm your source. all my contact info is in my intro thread.

THANKS
Tony
 
Last edited:
Hey hows it going.

Ive never heard of the "Smith Maneuver". maybe you can tell me abit about this??

to try and explain this here can become quite complicated. I have special simulation tools that show exactly how it works.

but in basic, this tool allows you to reduce the capital as fast and as much as you want. no limits per year. therefore allowing you to save alot in interest. this strategy is already being used by several MR members including myself. I did work with these members before I set up my forum.

I would never use a conventional 25 year amortization mortgage through a bank. anyone who is still using one is getting killed in interest. I can show you calculations, that after 25 years the homeowner pays double the amount originally borrowed in interest alone.

anyways, is you are buying a home and considering your financing options you should definitely consider this. just after 1 1/2 yrs ive done some serious damage on the capital.

I'll send you a pm

Thanks
Tony

p.s: whats the "smith Maneuver"
 
The Smith Maneuver is a well documented tax "workaround" that allows one to transform its "bad" debt into "good" debt (just like cholesterol! heh).

Basically, as you contract a 200k mortgate, for discussion's sake, on your house, you should open a Home Equity Line of Credit and Reborrow the equity as you pay down the mortgage. With the borrowed amount, you invest it into a income-earning product (any) that will (hopefully) offset the lending costs. If you have followed me along, you'll notice that your 200k debt will remain constant all along, never going down. Why do it then? Well the initial debt on your house is NONTAX Deductible as to the new line of credit that you are borrowing to invest IS TAX Deductible. You use your yearly tax return to either pay off the Capital or Invest even more.

After a couple of years, you end up with a mortgage that is completely paid with the help from the government.

This has become less interesting in Quebec as the SEGUIN budget a couple years ago changed some legislation in regards of this (which limits the amount you can deduct to the gain of the investment) but is still a good option.
 
Drock, I am curious though as to which method you are implying ...


I'm not buying anything YET as I have just hit the job market...I however own with my parents an appartment building so I'm learning as much as I can until the day I buy
 
Hey whats up,


ah ok cool. I know exactly what that is. but never heard it labelled like that. but i am familiar with the strategy " transfer bad debt into good debt".

very smart, you know your shit pretty good. yes the laws on interest deductibililty on investement loans have changed. Provincially, interest paid on an investment loan is only deductible against other investment income such as capital gains, interest income, dividends... Federally, interest paid on an investment loan is 100% deductible.

yes indeed you have the flexibility to use this mortgage tool in this manner if you choose to, but with no need to take out another loan.

this is proof how flexible and powerful this tool is.

however, this tool is only available to purchase single dwelling houses or duplexs. no apartment buildings.


thanks
Tony.
 
You must log in or register to reply here.
Back
Top