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Readvanceable Mortgages

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Nirvana65 | 04 Dec 2014, 12:26 PM Agree 0
Is a readvanceable mortgage a good idea? On one hand it would give me another line of credit without having to renegotiate my mortgage but you only need to pay interest payments, so you are not paying down your principal, and I could end up with a higher mortgage? Anyone have any advice? Looking to free up capital to invest.
  • Kory | 09 Dec 2014, 09:07 PM Agree 0
    It all depends on your goals. But I would do a quick google for "smith manoeuvre". The idea here is to convert your non tax deductable mortgage into a tax deductible line of credit. Also, remember with a the LoC portion only requiring interest payments, you still *can* pay down principle, but depending on your goals in may not be in your benefit to pay down a tax deductible LoC.
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