Bake Yourself a Tax Deductible Mortgage

Have Your Cake and Eat It

Have you found the perfect mix of owning a home and retiring comfortably turning into your Canadian nightmare?

Consider the following:

Mixing the cake dough

“Jim and Lisa Smith are 38 years old with a marginal tax rate of 39%. They purchased their last home for $500K and required a $300K mortgage at Closing.

Jim and Lisa are concerned that they may not have enough money to guarantee a comfortable retirement. They decide to further accelerate their mortgage strategy with TDMP.

On advice of their Financial Advisor, they borrowed to invest in a tax efficient Mutual Fund which pays monthly distributions of $1,340. These cash distributions are used to make extra monthly payments on the mortgage and are reinvested after paying the interest on the investment loan.

By integrating the Income Fund into the Tax Deductible Mortgage Plan, Jim and Lisa will acclerate their financial benefits and realize:

  • $143,243 in Free Tax Refunds
  • Mortgage Paid 15.5 Years Sooner
  • Investment Portfolio of $828,982

Jim and Lisa will need NO additional cash to achieve these financial results!”

© Courtesy 2009. TDMP.COM

TDMP – Tax Deductible Mortgage Plan

Invited to attend a seminar sponsored by the Rob Regan-Pollack Team of INVIS, the crowd gathered to hear words that may make you reconsider the way you structure your mortgage.

It’s a very complicated package that combines tax, mortgage and investment strategies. Given the perfect combination of ingredients you may end up with your cake and be able to eat it too. Like any fabulous recipe its ingredients are a team of dedicated specialists that includes mortgage advisors, accountants, financial advisors, banks and investment strategists. Be clear in knowing, that without these people in the mix, the odds are your cake will fall flat. Once the ingredients are placed in the bowl and mixed, the process of paying off your mortgage more quickly and accumulating substantial wealth appears to work – at least, that’s what the description accompanying the recipe suggests.


Any cook will tell you that while they try their best, they never warranty that the result will be exactly as described in the instructions. They may come close on a somewhat consistent basis, but only because they have given their full attention to every detail and with all that, not every cake will be perfect. The TDMP strategy is not much different. In print, all seems possible and the pictures look great, however, the reality of 15 to 30 years may exact a different result.

Prior to publishing, the better cook book recipes have had the luxury of time testing. This plan has not shared that privilege. While it seems to take into account all contingencies, those very contingencies rely heavily upon all ingredients maintaining a very high level of projected stability for a very long time. Forgoing all else, the winds of time and politic may alone prove the largest detrimental factor. Time equals change and it is that unknown change that makes guarantee elusive. In 15 to 30 year period a lot can happen, often the most serious being something over which you will have little or no control. Unfortunately, should your untried recipe fail, you will not have enough time to bake a new new cake.

Thinking this might be for you? Here are thoughts to consider. Reflect upon premature death, disability, divorce, loss of employment, stock market variances, or the tax department deciding to change it’s ruling.

On paper this plan looks like a perfect dream cake – for some it may be. In particular those with financial ability, a stable career, the capability to understand and willingness to accept risk. For others, it may be burnt cake.

Origins and Discussions of this plan known as – The Smith Manoeuvre

The following links offer some background to the concept and it’s application.

Mr. Smith’s site

Canadian Mortgage Trends

The Star

Canadian Business

*Disclaimer: Information provided by TDMP, INVIS, and the Rob Regan-Pollick Team and the linked sources.

** YatterMatters and the owner of this blog does not endorse nor recommend that the information provided will be accurate or suitable for any or all individuals. It is recommended that you contact the noted parties for further information to determine the feasibility of the TDMP program and it’s application to your financial circumstance. Further, it is recommended that you discuss this plan with independent parties.

***Quotation segment courtesy of M-Link Mortgage Corporation operating as TDMP.COM Copyright 2009. TDMP.COM. All Rights Reserved.

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

When Life Moves You - contact Larry:

*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

May 6th, 2009 at 7:50 pm

Hi Larry,

This sounds like a great plan on paper but the real world is different. After the market fell over 30% (2008) the distributions for these funds have been cut with more cuts in 2009 unless this market gains alot more. Which means the client has a investment that has gone down and the distribtion in some cases can not support the loan! If you want more details drop me a line.


July 31st, 2010 at 5:19 pm

Hi Larry,

I was wondering if you came across anyone who has done the TDMP paid fees and has made any money?

The markets year to date have done about zero.

I talked to the mortgage broker (above) some time ago and he told me he had never done anything like the SM.

With high debt levels this can be tough on the couple who loses their job or has no real plan.


July 31st, 2010 at 5:25 pm

Personally, I have not met individual participants although I do know a couple of brokers who deal with these products. Interesting point you bring up. If you don’t mind, I will forward your note and see if I get a reasoned unbiased response. I’ll wait for your ok.

July 31st, 2010 at 6:36 pm

Hi Larry,

Sure I’d be interested. In general, the SM. is OK for some people who have stable jobs, can handle the ups and downs of the market, but unless they fit, my thinking is only 10% should consider this.


December 1st, 2010 at 8:08 pm

Hi Larry,

I noticed your mortgage broker (INVIS) does the TDMP or (tax-deductible mortgage) how successful are they doing this? What happen to clients in 2008 when the distributions (from the mutual funds) to pay down the mortgage were cut?



December 1st, 2010 at 9:20 pm

Hi Brian, just so we are clear Regan-Pollock are advertisers as are Mortgage Trends.
Although I know both Rob and Francine in business and personally and while some of my clients may use their services or those of Mortgage Architects I am not able to address your question as I don’t have discussions with either about their clients or their business. Sorry, it’s just how I roll.
I do know they attend most of the Mortage Broker functions so you may ‘bump’ into them and you are free to ask them directly if you wish. Alternatively you might wish to contact Rob directly to discuss this.

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