Mortgage Advisor

Your TDMP Certified Mortgage Planner will help you choose a TDMP Approved Lender and structure your mortgage in compliance with CRA Cash Damming Rules.

Responsibilities:

Qualify for the Mortgage
Choose Approved Lender
Structure for Cash Damming
Ensure CRA Compliance

Will I need to change my current mortgage?

Many people do need to restructure their mortgage to comply with CRA guidelines. Your TDMP Certified Mortgage Planner will determine if refinancing is necessary.

How will my new mortgage comply with CRA guidelines?

Tax Deductible Mortgage Plan follows a rigorous setup and process for segregating tax deductible interest from non-tax deductible interest in compliance with Cash Damming guidelines. This is achieved in two ways:

Firstly, it is critically important when Cash Damming your mortgage to structure the secured debt in a re-advanceable, multi-component Home Equity Line of Credit (HELOC). The re-advanceable HELOC is necessary to optimize the financial benefits and maximize your annual tax refunds, and is the foundation that makes the financial strategy viable. The multi-component nature of the line of credit is the manner in which we are able to segregate tax deductible debt from non-tax deductible debt for the purposes of proving your entitlement [to CRA] to mortgage-related tax refunds.

Secondly, in order to be absolutely certain of your entitlement to tax refunds from a re-advanceable multi component HELOC used for Cash Damming, the Taxpayer must separate the tax deductible cash flows from the non-deductible cash flows using “separate accounts” as we are advised to do in the ITC-533 Bulletin.

What if I own my home free and clear?

If you own you home free and clear, and take a mortgage to invest in its entirety, then your mortgage interest is 100% tax deductible, Cash Damming is not required, and the structure of the mortgage is irrelevant.