It is a financial strategy designed to convert the non-tax-deductible interest debt of a residential mortgage to the tax deductible debt of an investment loan.

Financial Benefits from the Tax Deductible Mortgage Wealth Plan

The Tax Deductible Mortgage Wealth plan is designed to achieve 3 goals:

· Provide Annual Tax Refunds
· Pay Off Your Mortgage Sooner
· Increase Your Family’s Net Worth

There are several ways the Tax-Deductible Mortgage Wealth Plan approach can be applied to suit different interests. The team of professionals at The Investment House of Canada Inc. will work with you to implement a personalized program with a set of financial products and investments most suited to meet your individual needs and objectives. .

While this idea may sound simple, it is a strategy most effectively executed by a team of professional financial advisors. Your team at The Investment House of Canada Inc. will use their financial planning expertise, as well as their independent access to the best investment managers and products, to enable you to successfully reach your financial planning goals. The most important aspect of our business is to know and understand our clients and their needs.

Mutual funds and all other investments are offered through The Investment House of Canada Inc.



Disclaimer: The information contained herein was obtained from sources believed to be reliable and we cannot represent that it is accurate or complete. Neither the information nor any opinion expressed constitutes a solicitation by The Investment House of Canada Inc. for the purchase or sale of any securities or financial products. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Borrowing to invest is suitable only for investors with higher risk tolerance. You should be fully aware of the risks and benefits as both investment losses and gains may be magnified. The value of your investment will vary and is not necessarily guaranteed; however, you must meet your loan and income tax obligation and repay your loan in full. Please read the terms of your loan agreement and the investment details for important information and discuss with your financial advisor how to borrow and invest.

Mutual fund units and other securities may be purchased using available cash, borrowed money or a combination of cash and borrowed money. The term leveraging is used when borrowed money is used for all or some of the purchase. Leveraging magnifies both the gains and losses on the investment.

When an investment is purchased solely with cash, the percentage gain or loss will equal the percentage increase or decrease in the value of the securities. When leveraging is used other factors must be taken into consideration such as, the percentage of the purchase that is leveraged and the terms of the loan used to secure the purchase.

In the terms of the loan the lender may require that the amount outstanding on the loan not rise above an agreed percentage of the market value of the securities. In the event of this occurrence the borrower must pay down the loan with other cash resources or sell the securities thereby returning to the agreed upon loan –to-value relationship. The sale of securities to meet the loan agreements may at times have to be done at a loss. Money is also required to pay the interest on the loan. Investors borrowing money to purchase investments are advised to have adequate financial resources in order to pay the interest and to reduce the loan if required by the loan arrangements.

Leveraging Example:

$100,000 of mutual fund units are purchased of which $25,000 is used from available cash and $75,000 is borrowed money.

If the value of the units decline by 10% the equity interest (Value of the securities less the amount borrowed) falls to $15,000 ($90,000 - $75,000). This represents a 40% decline of the cash invested.

Investors considering borrowing to purchase securities should be aware that the purchase with borrowed monies involves greater risk than a purchase using available cash resources only. To what extent a purchase using borrowed monies involves undue risk is a determination to be made by each purchaser and will vary depending on the circumstances of the purchaser and the securities purchased.