Is there any way to make the mortgage debt on a home more tax-efficient?

I recently sat down with Troy Matty of Absolute Financial Group to discuss investments, life insurance and mortgage debt. Troy is a financial expert and has a wealth of information on many investment strategies.

Highlights from the interview:

OMI: Is there any way to make the mortgage debt on a home more tax-efficient?

TM: That is a great question because the total accumulated interest charges on a mortgage debt, on average, is roughly equal to the original starting balance of a mortgage! This is a large sum of money we’re talking about! The answer is yes, you can make a mortgage debt more tax-efficient, but it is strongly recommended you work with an advisor who understands this type of strategy, and also an accountant that does as well. This strategy was specifically designed to make a mortgage debt more tax-efficient, pay off the mortgage debt sooner, and also create an additional pension along the way.

OMI: With the markets in turmoil, and investment portfolios decreasing, what advice can you offer investors?

TM: When it comes to investments, the biggest considerations are the risk tolerance and objectives of the individual, as well as the time horizon that they have. Although one person may see the markets as catastrophic, another may see them as an opportunity. Because investments are sold in units, in a “bull” market the purchasing power of your dollar is minimized, whereas in a “bear” market, your dollar can go a much longer way... and that’s exactly where we are today. It is strongly recommended before you purchase any investments, that they are in line with your risk tolerance and also your investment objectives. Conversely, it is equally recommended that before you sell any of your investments, you are aware of the possible repercussions of doing so. If time is on your side and you don’t need to draw off any of your investments, surrendering them or cashing out may be the worst thing you could do. Consult with an advisor and/or get a second opinion, always!

For expert financial advice please contact Troy Matty, he can be reached at:
Troy Matty
Absolute Financial Group
416.717.5629
tmatty@absolutefinancial.ca

For expert mortgage advice please contact Greg Barrow:
416.807.7123
gbarrow@dominionlending.ca