Private WealthFinancing
Planning tools · For advisors & their clients

Cash damming

For clients with rental or business income and a home mortgage: pay the business's expenses from a dedicated credit line (whose interest is deductible), and send the business's cash at the mortgage instead. Same dollars, same total debt — but month by month, non-deductible mortgage becomes deductible borrowing.

✓ Verified math — the arithmetic on this page is proven against independent reference calculations; the proof is printed near the bottom.

Home mortgage balance
$
Mortgage rate (fixed)
%
Remaining amortization25 years
Monthly rental / business expenses redirected
$

Genuine deductible operating expenses (not personal spending) now paid from the credit line.

Credit-line rate
%
Marginal tax rate45%
Debt fully converted to deductible in
Tax refunds collected along the way$0
Extra interest cost of the strategy (pre-tax)$0
Net position at conversion (refunds − extra interest)$0
Ongoing tax saving each year afterwards$0/yr

The conversion

Non-deductible mortgage Deductible credit line

Setting this up properly needs the right products — a readvanceable mortgage or dedicated line with clean tracing — and coordination with the client's accountant. That structuring is this desk's work.

Arrange a confidential introduction

Ramin Hallaji, Principal — licensed in British Columbia (BCFSA) and Alberta, Dominion Lending Centres Group · 778-879-6768 · ramin@privatewealthfinancing.ca

Illustration only — not tax, investment, or legal advice, and not an offer of financing. Deductibility depends on CRA's direct-use rules: the credit line must pay only genuine income-earning expenses, kept cleanly separate from personal spending, with the paper trail to prove it — the client's accountant must bless the setup before it starts. Assumes constant rates, refunds credited as interest accrues, expenses steady, and the mortgage payment plus redirected cash continuing until conversion. Mortgage interest here is figured with Canadian semi-annual compounding; the credit line compounds monthly. Private Wealth Financing arranges mortgage financing only.