Free Equity Assessment
FSRAO Brokerage #12685 · Lic #M19002342 · Licensed Across Canada info@wiseequity.ca·(647) 955-7464
Cash Damming Strategy

Cash Damming: The Business Owner's Tax-Efficient Mortgage Strategy

A CRA-aligned strategy that converts non-deductible personal mortgage debt into tax-deductible business debt — using your existing business cash flow.

Book a Cash Damming Consultation
  • “Our accountant couldn't believe it was legal. It's brilliant.” — James & Lisa, Calgary
01 The Strategy

What Is Cash Damming?

Cash Damming is a structured financial strategy that uses business income to pay down personal mortgage debt while redirecting business expenses to a line of credit.

The result is a gradual conversion of non-deductible personal mortgage interest into potentially tax-deductible business debt — without changing your cash flow.

How Cash Damming Works

  1. 01

    Income to Mortgage

    Business income is deposited directly to your personal mortgage.

  2. 02

    Expenses to Credit

    Business expenses are paid from a secured line of credit.

  3. 03

    Deductible Interest

    The line of credit balance is tax-deductible as a business expense.

  4. 04

    Debt Conversion

    Over time, personal mortgage debt is replaced with deductible business debt.

02 Suitability

Who Is Cash Damming For?

Ideal candidates
  • i. Incorporated business owners
  • ii. Self-employed professionals
  • iii. Business owners with consistent business expenses
  • iv. Homeowners with an existing mortgage and business income

Cash Damming is not suitable for employees or those without regular business expenses. Proper structuring and professional oversight are essential.

  • Potential Benefits

    Convert non-deductible mortgage interest · No change to monthly cash flow · Accelerated mortgage repayment · CRA-aligned when properly structured.

  • Risks & Considerations

    Requires consistent business income · CRA compliance is critical · Improper structuring can invalidate deductions · Professional oversight required.

    For CRA guidance on interest deductibility, see the Canada Revenue Agency.

03 The Comparison

Cash Damming vs Smith Manoeuvre

FeatureCash DammingSmith Manoeuvre
Best ForBusiness ownersInvestors / employees
Income SourceBusiness incomeEmployment / investment income
Investment RequiredNoYes
Mortgage ConversionBusiness debtInvestment debt
Both strategies, one plan

Some clients benefit from both strategies simultaneously. Our team assesses your complete financial picture before making any recommendations.

04 Book a Consultation

Is Cash Damming Right for Your Business?

If you're an incorporated business owner or self-employed professional, Cash Damming may significantly reduce your tax burden while accelerating mortgage repayment.

Home Equity Strategy Calculator

Answer a few quick questions to see how much tax-free income and equity your home could unlock.

Progress25%
1
Property
2
Income
3
Goals
4
Contact
Property & Mortgage
$
Please enter your home's estimated value.
$
Enter 0 if your home is mortgage-free.
Please select your province.
Please select your age range.
Employment & Income
Enter the income of the person who would implement the strategy (before taxes). Please select your household income range.
Your Goals
Please choose the option that fits best.
Where Should We Send Your Results?
Please enter your first name.
Please enter your last name.
Please enter a phone number.
Please enter a valid email address.

Your Personalized Estimate

Based on the information you provided, here's what your home equity could do for you.

Current Home Equity
$0
Estimated home value minus your current mortgage balance.
Equity Potentially Accessible (up to 80% loan-to-value)
$0
A common ceiling for HELOCs and readvanceable mortgages used in Smith Manoeuvre / Cash Damming strategies.

Want to see exactly how this would work for you?

Book a free, no-pressure clarity call with a Wise Equity advisor. We'll walk through your numbers and answer your questions.

Book Your Free Discovery Call
These figures are illustrative estimates only, generated for educational purposes based on the information you provided. They do not constitute a mortgage approval, financial advice, tax advice, or investment advice. Actual amounts depend on lender criteria, appraised value, underwriting, and your individual financial situation. Speak with a licensed Wise Equity advisor before making any financial decisions. Wise Equity Inc. — Lic #M19002342, FSRAO Brokerage #12685.

Prefer to talk it through first? Book a time directly below.

Your Next Step

See What Your Business Cash Flow Could Convert

Start with a free equity assessment, or book a no-pressure consultation with our team.

Start Your Equity Assessment Prefer to Talk? Call Us