HELOCs and the Smith Manoeuvre in Canada
HELOCs, readvanceable mortgages and making interest deductible.
A home equity line of credit can be cheap, flexible borrowing — or a way to turn mortgage interest into tax-deductible investment interest through the Smith Manoeuvre. This hub is for homeowners who want to understand both the strategy and its risks.
Start with the Smith Manoeuvre guide, then HELOC strategies that keep the CRA's tracing rules satisfied, readvanceable mortgages, and cash damming for landlords and the self-employed. Deductibility rules link to the CRA's own guidance, and every guide spells out what happens when markets or rates move against you.
These strategies involve leverage. Each guide says when to get advice from a tax professional for your own file.
What this hub helps you decide:
- Is the Smith Manoeuvre right for me?
- How do I keep HELOC interest deductible?
- Which readvanceable mortgage features matter?
- What could go wrong?
Updated November 2026 · 4 guides by Andrew
Start here
- The Smith Manoeuvre in Canada: Steps, Deductibility, and the Risks
- HELOC Strategies That Stay CRA-Clean
- Readvanceable Mortgages in Canada: How They Work and Which Lenders Offer Them
- Cash Damming in Canada: Steps, Tracing, and the Smith Manoeuvre Difference
New to real estate? Read the overview first: The Canadian Mortgage Guide: Rates, Terms, Renewal, and Prepayment.
All HELOC & Smith Manoeuvre guides
Cash Damming in Canada: Steps, Tracing, and the Smith Manoeuvre Difference
Cash damming sends rental or business cash to the home mortgage and borrows for the expenses. CRA has not approved the nickname.
Readvanceable Mortgages in Canada: How They Work and Which Lenders Offer Them
A readvanceable mortgage lets a revolving limit rise as you pay principal. OSFI caps that revolving slice at 65% of value. Anything between 65% and 80% has to amortize and must not readvance. Confirm the contract before you rely on a brand name.
HELOC Strategies That Stay CRA-Clean
Interest is deductible when borrowed money earns income. How to trace a HELOC, run a cash dam, and avoid the mixes that sink the deduction.
The Smith Manoeuvre in Canada: Steps, Deductibility, and the Risks
How a readvanceable mortgage turns principal into an investment loan, when the interest is actually deductible, and the leverage risks the brochure skips.