Private WealthFinancing
Planning tools

Smith Manoeuvre Calculator (the return needed to break even)

The Smith Manoeuvre borrows back each month’s paid-off mortgage principal on a credit line and invests it, so the interest on that borrowing can be tax-deductible. The fixed-rate premium, the line's tiered cost, the taxes — and the break-even return, honestly.

✓ Verified math — proven against independent references and last checked October 15, 2026; the full proof is under "How this is figured," below the results.

New to the strategy? Read the plain-language explanation first.

Net advantage vs the cheaper variable, after 10 years
$0
Break-even return at this horizon
—
To genuinely profit, the client needs
—

Advantage by year, at your expected return

How this is figured — assumptions & the printed proof

The honest version

It prices the fixed-rate premium you accept to run the structure, the credit line's tiered cost, and the taxes — then tells you the minimum return that breaks even, and what the client is actually ahead (or behind) at your assumptions. Leverage magnifies losses as well as gains; the break-even line is where the honesty lives.

Structuring the chassis, the sub-accounts, and the clean tracing — with your plan and the client's accountant in the loop — is this desk's work.

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Ramin Hallaji, Principal, licensed in British Columbia (BCFSA) and Alberta (RECA) — a private-client desk of Mortgage Guru Financial, Dominion Lending Centres Group · 778-879-6768 · ramin@mortgageguru.ca · Legal & licensing · Privacy policy

Proud member of the Greater Langley Chamber of Commerce.

Illustration only — not investment or tax advice, and not an offer of financing. Models the desk's locked reference method: fixed-rate mortgage (semi-annual compounding) versus the cheaper variable given up, identical out-of-pocket on both sides; principal re-borrowed and invested monthly; credit-line interest capitalized, deductible, refunded annually at the marginal rate; tiered line pricing; 25-year amortization; deductibility requires clean tracing and income-producing investments (the client's accountant confirms). Returns are assumed constant and pre-tax on growth; markets vary and leverage magnifies losses as well as gains. Rate defaults are July 2026 desk figures — editable and perishable. Private Wealth Financing arranges mortgage financing only.