New OSFI Mortgage Rules - How Do They Affect The Smith Manoeuvre
♦ New OSFI Mortgage Rules - How Do They Affect The Smith Manoeuvre?♦
You may have received a letter from your bank or heard people talk about the new OSFI mortgage rules.
We’ve had a lot of our clients contacting us about it as well, since the new rules start this year for mortgages.
These new rules will affect the Smith Manoeuvre in some ways, so it’s important to understand exactly what you should do.
Watch my latest video to find out:
• What is the Smith Manoeuvre?
• What are the new OSFI mortgage rules?
• How will they affect the Smith Manoeuvre?
• What is the formula in the rules?
• Examples of the effect.
• Effect on your monthly investment.
• Best & worst-case examples.
• How do you manage the process?
• How to minimize or eliminate the effect.
• Effect on Smith Manoeuvre vs. TFSA decision.
.... and more!
Enjoy this week's video!
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⏰ TIMESTAMPS
00:00 | Introduction
00:25 | What you'll learn in this episode.
01:00 | What is the Smith Manoeuvre?
01:55 | What are the new OSFI Rules?
03:45 | How the new OSFI Rules affect the Smith Manoeuvre.
05:00 | What is the formula in the new OSFI Rule?
07:24 | New Smith Manoeuvre examples.
12:43 | Effect on your monthly investments.
14:25 | Best & worst-case examples.
15:20 | How to manage the new rule?
16:50 | How to minimize or eliminate the effect of the new OSFI rule?
21:33 | Effect on Smith Manoeuvre vs. TFSA decision.
25:50 | Recap of the video.
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Thanks so much!
Ed Rempel
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Ed Rempel CPA, CMA, CFP is a financial blogger, fee-for-service financial planner and tax accountant with a ton of real life financial planning experience. He was awarded “Best Canadian Personal Finance Blog” by Expertido, and is the #1 financial blog in Canada for a financial planner on Hardbacon and Feedspot.
For the past 28 years, he has assisted thousands of Canadians with creating real, professional, “interactive” financial plans that earn results. Ed is known for his financial strategies, such as the Smith Manoeuvre and Lifecycle Investing strategies. He is also particularly skilled with the 8-Year GIS Strategy, a strategy to help seniors qualify for larger government pensions using effective planning & investing.
Пікірлер: 6
Very helpful, thanks a lot. One thing that I found contradictory though: TD, National Bank and BMO have all sent letters to customers that the new rules will start applying to existing mortgages. However, your video suggests that the new rules dont affect existing mortgages.
@EdRempel
9 ай бұрын
The bank letters say they will apply to mortgages the first time they are renewed or refinanced after October 31, 2023. I have seen the TD & BMO letters.
@petrelli11
9 ай бұрын
@@EdRempelthanks for replying. I am seeing the TD letter as well and it says these changes are applicable as of 30 Oct 2023 and the current terms and conditions would be amended. So, it looks like, at least for the letter I am seeing, these changes will be in effect as of 30 Oct 2023. Maybe, TD is taking a different approach for different clients. Thanks again for following up on my comment and the great video.
About SM… If I wanna sell and up size, do I have to sell all the stocks and pay capital gain taxes?
Kind of lost you on the split mortgage part Ed, but thanks for the updated info on the SM .
@EdRempel
9 ай бұрын
You can have more than one mortgage within the same readvanceable mortgage. It is usually worthwhile to do it once your credit line gets large, say over $300K, since mortgages are usualy lower interest rates. It is more complex, since the mortgage requires a P+I payment. However, with the Smith Manoeuvre, you can borrow back the principal portion, so you are only paying the mortgage interest from your cash flow.