Free Debt Swap Course:
How Canadian Homeowners are Using Their Investments to Save on Mortgage Interest
Make Them Work on Your Mortgage
You're paying non-deductible mortgage interest while holding investments that could change that — at no extra cost. The debt swap is a CRA-compliant restructuring technique that converts bad debt into good debt using what you already own.
You're paying mortgage interest that gives you zero tax benefit, while your investments sit in a non-registered account doing nothing to help. The debt swap links them — turning non-deductible mortgage interest into deductible investment interest without changing your net position.
Most Canadians carry a mortgage and hold investments independently. The mortgage interest is non-deductible. The investments grow, but the debt doesn't work for you. You're leaving a significant tax advantage on the table every year.
- Mortgage interest is non-deductible — CRA gives you nothing back
- Investments sit in a non-registered account, taxed on gains and income
- You're paying down "bad debt" with after-tax dollars
- No structural connection between your assets and your debt
You sell your non-registered investments, use the proceeds to pay down your mortgage, then borrow via HELOC to repurchase the same investments. Net result: identical portfolio, same mortgage balance — but the interest is now deductible because you borrowed to invest.
- HELOC interest is fully tax-deductible — CRA-compliant
- Same investments, same amounts — nothing actually changes in your portfolio
- Annual tax refund from the deductible interest accelerates your payoff
- Works as a standalone strategy or layered with the Smith Manoeuvre
A plain-language walkthrough of the debt swap — how it works mechanically, what CRA requires for the interest deduction to hold, who it's right for, and how to execute it correctly without triggering an audit.
The CRA rule is simple: interest is deductible when you borrow to earn income. Your mortgage doesn't qualify because the borrowed money bought a personal residence. This module explains the legal basis for converting it — and why the debt swap works.
Step-by-step: sell non-registered investments → pay down mortgage → draw HELOC → repurchase investments. This module walks through each step, the timing, and what documentation you need to support the deduction with CRA.
The deductibility of the interest depends entirely on a clear, traceable link between the borrowed funds and income-producing investments. This module covers proper tracing, the commingling mistakes that kill the deduction, and how to stay audit-proof.
How to calculate the annual interest deduction, what your marginal rate means for your refund, and how that refund compounds over time when redirected to your mortgage. Includes the honest answer on when the numbers are meaningful versus marginal.
The debt swap is often the fastest way to get into a deductible debt position — especially for clients who already hold non-registered investments. This module covers how it layers with ongoing strategies and when to use each one.
The debt swap works best for people who already hold non-registered investments alongside a mortgage — and are paying full tax on interest with nothing to show for it.
If you hold stocks, ETFs, or mutual funds outside an RRSP or TFSA while carrying a mortgage, you have everything you need to execute a debt swap today.
The higher your marginal rate, the larger the annual refund from the deductible interest. At 43%+, the annual tax savings are material — not just theoretical.
If you've heard about the Smith Manoeuvre but don't want to set up a readvanceable mortgage from scratch, the debt swap may be a faster entry point using what you already have.
A mortgage renewal or refinance is the natural window to restructure. If you're within 6–12 months of either, this course gives you the framework to walk in prepared.
- All your investments are inside registered accounts (RRSP, TFSA, FHSA) — the swap requires non-registered holdings
- You have no mortgage or plan to pay it off within 1–2 years
- You're not comfortable with HELOC borrowing or want zero investment exposure
- You're in a low tax bracket — the deduction benefit won't be meaningful enough to justify the restructuring
Not a Theorist
Austin Yeh is a licensed mortgage strategist based in Toronto, certified in the Smith Manoeuvre. He works with clients across Canada — from first-time buyers to real estate investors to high-income earners restructuring their finances for tax efficiency and long-term wealth.
Austin personally acquired over 25 rental properties before 30 and currently holds 13, with experience across fix and flips, short-term rentals, multi-family, BRRRR, and long-term holds. He built these courses because most Canadians have never been shown how to use their mortgage as a wealth tool — not just a debt to eliminate.
The debt swap is one of the fastest, least-disruptive ways to get into a tax-efficient debt structure. This course exists because most people who would benefit from it have never heard of it.
I had $200K in a non-registered account and a $400K mortgage and never connected the two. Austin showed me the debt swap in one call and it completely changed how I think about my finances.
The course made the mechanics crystal clear. I finally understood what "tracing" meant and why it matters for CRA. It gave me enough to have an intelligent conversation with my accountant and Austin about next steps.
I was skeptical this was actually legal. Austin laid out exactly why it works, what CRA says about it, and where people mess it up. That honesty is what made me book a call.
for Your Situation?
Book a free call with Austin to walk through your mortgage, your investment accounts, and whether a debt swap makes sense before your next renewal. No sales pitch — just a straight answer.
Yes. The debt swap is a CRA-compliant strategy based on the Interest Act and Income Tax Act. CRA allows the deduction of interest on money borrowed for income-producing investments — the debt swap creates exactly that structure. The key is executing it correctly, which Module 3 covers in detail. It has also been tested and confirmed in Canadian tax court (the Singleton case).
Not necessarily all of them — you can execute a partial debt swap depending on your mortgage balance, HELOC limit, and investment portfolio size. The course walks through how to size the swap based on your specific situation. A consultation with Austin is the best place to run the actual numbers.
Potentially yes — if your investments have unrealized gains. This is one of the key considerations Module 4 addresses. In some cases the annual tax deduction outweighs the one-time capital gains hit; in others it doesn't. The course gives you the framework to assess this honestly, and a consultation will help you run your specific numbers.
The Smith Manoeuvre is an ongoing monthly cycle: each mortgage payment creates HELOC room, which you borrow to invest — gradually converting debt over time. The debt swap is a one-time restructuring that converts a large chunk of debt immediately using existing investments. They're complementary — many clients do a debt swap first to get into a deductible position quickly, then run the Smith Manoeuvre on an ongoing basis.
CRA requires a clear, direct, traceable link between the HELOC borrowing and the investment purchase. The two most common mistakes are commingling funds (running personal and investment money through the same account) and breaking the paper trail. Module 3 covers exactly what documentation to keep and how to structure the transaction so it's defensible.
The course explains the strategy in general terms — how it works, whether it might apply to you, and where the common mistakes happen. A consultation is about your specific situation: your investment accounts, mortgage balance, lender, tax bracket, and goals. Most people go through the course first, then book a call once they're ready to explore execution.
Understand exactly how it works, whether your investments and mortgage qualify, and what execution looks like. Free, self-paced, no obligation.