Are you a Smart Homeowner?
One financial impasse that many Canadian homeowners contemplate is being able to save money for when they retire. Since many homeowners are also doing their best to pay for their homes at the same time when they should be trying to save money, it seems like a no win situation. Should they put off paying their mortgage in order to save as much as they can for retirement or vice versa? Well, there is a way to do both of these tasks and it can help alleviate much of the stress and confusion associated with them.
Americans have been envied by their Canadian counterparts because they have the advantage of tax-deductible mortgages. Over the years many Canadian homeowners have implemented strategies where they too can also take advantage of tax-deductible mortgages.
In fact, many innovative financial advisors have discovered a way to create tax-deductible mortgages for their clients. This can be done by reorganizing your mortgage. This achieves three things: it will help you save on interest; you will be able to pay down your mortgage at a faster pace; it also enables you to maintain a portfolio for retirement. This can all be accomplished without adding to your total debt.
This is an alternative way of making the Canadian tax law work for you, as oppose to against you. This works because Canadian tax laws allow you to deduct the interest on loans for qualified investment purposes. Therefore, with the right financial strategies you can transform your non-deductible mortgage into a tax deductible mortgage debt.
This is how this strategy works. Since your mortgage payment includes principal and interest, once a principal reduction has been put into effect you can re-borrow the money and invest it. This interest of the loan now becomes tax deductible and can lead to a potential tax refund.
One of the advantages of having a mortgage planner is that they can assist you in setting up a re-advanceable mortgage or home equity line of credit.
There are many benefits to this type of this investment. You will receive a bigger tax deduction based on how much principal you pay. Therefore the more principal you pay and then reborrow the bigger the tax deduction you will receive.
What makes this method even more effective is that there is also a possibility that you will also receive yearly refund checks. You can then use these refund checks to pay against your mortgage. How is that for creating a nice nest egg for your retirement? And what makes it even more advantageous for you is that you have not added to your initial debt.
Once the conversion is completed your mortgage debt will drop to zero, while at the same time your corresponding tax-deductible loan grows.
In addition, mortgage tax refunds will also give you a lower effective interest rate. Many homeowners can enjoy up to a 1% lower interest rate by making their mortgage tax deductible. This effective interest rate is figured by the current cash value of the tax refund checks, which come in every year when you have a tax deductible mortgage plan.
So what is the cost for you? And what do you have to do to take advantage of this great deal? The cost in generally around $250 and is the cost for a property appraisal fee. By making your mortgage tax deductible you will be creating wealth, have an excellent investment portfolio and pay off high interest debts. What more could you ask for?
And what is best about this service is that you don't even have to have tons of equity on your house to qualify. Let an expert planner help you evaluate your options today.
Americans have been envied by their Canadian counterparts because they have the advantage of tax-deductible mortgages. Over the years many Canadian homeowners have implemented strategies where they too can also take advantage of tax-deductible mortgages.
In fact, many innovative financial advisors have discovered a way to create tax-deductible mortgages for their clients. This can be done by reorganizing your mortgage. This achieves three things: it will help you save on interest; you will be able to pay down your mortgage at a faster pace; it also enables you to maintain a portfolio for retirement. This can all be accomplished without adding to your total debt.
This is an alternative way of making the Canadian tax law work for you, as oppose to against you. This works because Canadian tax laws allow you to deduct the interest on loans for qualified investment purposes. Therefore, with the right financial strategies you can transform your non-deductible mortgage into a tax deductible mortgage debt.
This is how this strategy works. Since your mortgage payment includes principal and interest, once a principal reduction has been put into effect you can re-borrow the money and invest it. This interest of the loan now becomes tax deductible and can lead to a potential tax refund.
One of the advantages of having a mortgage planner is that they can assist you in setting up a re-advanceable mortgage or home equity line of credit.
There are many benefits to this type of this investment. You will receive a bigger tax deduction based on how much principal you pay. Therefore the more principal you pay and then reborrow the bigger the tax deduction you will receive.
What makes this method even more effective is that there is also a possibility that you will also receive yearly refund checks. You can then use these refund checks to pay against your mortgage. How is that for creating a nice nest egg for your retirement? And what makes it even more advantageous for you is that you have not added to your initial debt.
Once the conversion is completed your mortgage debt will drop to zero, while at the same time your corresponding tax-deductible loan grows.
In addition, mortgage tax refunds will also give you a lower effective interest rate. Many homeowners can enjoy up to a 1% lower interest rate by making their mortgage tax deductible. This effective interest rate is figured by the current cash value of the tax refund checks, which come in every year when you have a tax deductible mortgage plan.
So what is the cost for you? And what do you have to do to take advantage of this great deal? The cost in generally around $250 and is the cost for a property appraisal fee. By making your mortgage tax deductible you will be creating wealth, have an excellent investment portfolio and pay off high interest debts. What more could you ask for?
And what is best about this service is that you don't even have to have tons of equity on your house to qualify. Let an expert planner help you evaluate your options today.
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