The Canadian Mortgage Show

Episode 38: Mortgage Interest Sucks—Here’s How to Make It Tax Deductible (Yes, Really)

Alex Pang & Alex Shanks Season 1 Episode 38

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In this week’s episode, Alex & Alex dive into Cash Damming—a powerful but lesser-known tax strategy that can help you turn personal debt into tax-deductible business debt. Whether you're a freelancer, landlord, or sole proprietor, this might be the financial play you've been overlooking.

Here’s what you’ll learn:

  • What is Cash Damming? How this strategy legally converts personal debt into tax-deductible business debt
  • Who can use it? Rental property owners, freelancers, and sole proprietors—find out if you qualify
  • How it works: The step-by-step setup you need, including separate bank accounts and a personal line of credit
  • The benefits: How you can speed up paying off your mortgage and write off loan interest
  • The fine print: Why a clean credit score and long-term discipline are key, and what to watch for if you’re in a partnership or going through a breakup
  • Real talk: This isn't a get-rich-quick scheme—it's a slow burn tax efficiency move that could save you thousands

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