The Smith Manoeuvre strategy and how to use it — the right way — to your advantage

The Smith Manoeuvre has a bit of a mystique around it, partly because it deliberately mixes mortgage debt with investing in a way that makes some people uneasy and others curious. This piece pulls the strategy apart and explains, in plain terms, the idea of gradually converting non-deductible mortgage interest into something tied to an investment loan, along with the appeal and the very real risks of borrowing to invest. The honest framing is that it can work, but only when it is set up carefully and suits the person using it, since it adds leverage and complexity that not everyone should take on. It is a useful read for a disciplined homeowner with stable finances who has heard the term and wants to understand what is actually involved before deciding whether it has any place in their own plan.