How are Tax Refunds generated and are they really Free?
The Tax Deductible Mortgage Plan (TDMP) allows you to convert your mortgage into a tax-deductible loan. In turn, you convert the interest into a tax deduction, which for many people will generate a Tax Refund. TDMP is a new method of integrating your debt and investments that benefits the everyday Canadian.Wealthier Canadians commonly employ expensive tax accountants and tax lawyers to replace their non-tax deductible loans (houses, vehicles) with investment loans. TDMP improves on those methods, introducing a new procedure that enables the rest of us to convert our non-deductible mortgage to a tax-deductible loan. By converting your mortgage into a tax-deductible loan, you are turning the interest into a tax deduction. When you subtract that deduction from your income, you get a tax refund. That refund is Free money. You do not have to invest any of your own income or increase your debt to get the tax refund. Conversely, the refund you receive from investing in RRSPs is not free money
