What is the Smith Manoeuvre?

What is the Smith Manoeuvre ? It is a financial strategy that allows you to use your home equity to borrow money at a lower interest rate. This can be used for a number of purposes, such as investing in other properties or consolidating debt. In this blog post, we will discuss how the Smith Manoeuvre Strategy works, and how you can use it to improve your financial situation!

The Smith Manoeuvre Strategy is named after its creator, Fraser Smith. He developed the strategy in the early 1990s as a way to help Canadians pay down their debt and build their wealth. The strategy is based on the principle that you can use your home equity to borrow money at a lower interest rate, and then use that money to invest in other assets.

Different ways to implement the Smith Manoeuvre Strategy:

One way is to take out a home equity line of credit (HELOC) and use the money to pay off your high-interest debt, such as credit cards or lines of credit. You will then have one monthly payment at a lower interest rate, which will save you money on interest costs.

Another way to implement the Smith Manoeuvre Strategy is to take out a HELOC and use the money to invest in other assets, such as stocks, mutual funds, or real estate. The idea is that you will earn a return on your investment that is higher than the interest rate on your HELOC, and this will help you to build your wealth over time.

If you are looking for a way to pay down your debt and build your wealth, the Smith Manoeuvre Strategy may be a good option for you. Talk to a financial advisor to see if this strategy is right for you. Thanks for reading!