Take Advantage Of Tax Deductible Mortgages

By Judy Shilmar

Often Canadian homeowners find themselves dealing with a problematic situation. They are simultaneously attempting to pay their mortgage while saving money for retirement. As many people know this can be quite complicated, especially if you have bills stacking up as we speak.

It is hard to determine when the appropriate time is to start saving when you have high amounts of debt. This is because it can often be a hardship for people to pay what needs to be paid while having enough money to put towards an investment account.

Unlike Americans, Canadians for the most part do not tax deductible mortgages. That is until recent years where they have found full proof ways to make the Canadian tax law work for them. And they do it all in a legal manner.

Smart homeowners have discovered that they too can take advantage of a tax deductible mortgage. This is accomplished through their financial advisors who create one for them. By restructuring their mortgage they are able to do a number of things.

They can save on interest, pay off mortgage debt at record speed and create a very strong retirement portfolio. This is done all without adding to your total debt. So how is this done?

The Canadian tax laws permit the deduction of interest on loans for eligible purposes for investment. With the right guidance you can revolutionize your debt by making it a tax deductible investment.

Since your mortgage payment includes principal and interest, once a principal reduction is rendered you can re-borrow that money and invest it. The money that you borrowed has interest; therefore it is now tax deductible. It is also quite possible that by doing this you have also increased your chances of receiving a tax refund check.

A mortgage planner can help you with many investment options, such as a re-advanceable mortgage or a home equity line of credit. You will receive a bigger tax reduction based on how much principal you pay on your mortgage. The more money you pay towards your principal the larger the tax deduction.

What is great about this savvy financial move is that it works in two ways. It helps you pay your mortgage when a refund check arrives in the mail. It also helps you build a stellar investment portfolio.

There are many benefits when it comes to mortgage tax refunds. One benefit is it will give you a lower interest rate because your mortgage rate is tax deductible. Many Canadian homeowners see a 1% decrease in their interest rate by making their mortgage tax deductible. This lower interest rate is calculated by the cash value of the refund checks.

So how do you get in on the action? In order to take advantage of these great financial planning tips you will have to pay an appraisal fee. This is usually around $250. When your mortgage is tax deductible you will be building an attractive investment portfolio and pay off debts with high interest rates.

So what are you waiting for? Call us today in order to take advantage of these great services. Let one of our expert financial planners assist you in decreasing the amount of debt in your life while paving a path towards financial freedom.

About the Author: If you want more information about

Calgary mortgage planners

then be sure to try Judy Shilmar. She is a Mortgage Professional based in Alberta Canada andyou can reach her at

mortgageit.ca

Source:

isnare.com

Permanent Link:

isnare.com/?aid=491423&ca=Real+Estate