No, it's not a wrestling move or a new dance craze.
The Smith Manoeuvre is an investment strategy created by financial planner Fraser Smith, who will be presenting a seminar at the British Columbia Institute of Technology this Thursday.
Smith developed the manoeuvre after examining the Canadian Tax Act in the '80s when he was a financial planner, because it bothered him that mortgages were tax deductible in the United States but not in Canada.
"My personal mission statement is to give every Canadian a chance to make their mortgage tax deductible," Smith says in a phone interview from his business in Sidney, B.C.
Even more important than the deduction, though, he says, is what can be done with the money - building an investment portfolio for retirement.
In Canada, investments are tax deductible though mortgages are not, which is the basis for Smith's strategy.
Smith presented his concept of the country's first readvanceable mortgage to VanCity in the '80s, he says, which included a home equity line of credit along with the regular mortgage. As the mortgage is paid off, the line of credit increases.
Most banks in Canada now have this type of mortgage, he points out.
This allows the mortgage holder to borrow from the line of credit, putting that money towards investments such as stocks and bonds, according to Smith.
As the investment revenue increases, the mortgage can be paid down more quickly, and the homeowner is left with a retirement pension in the form of an active investment portfolio.
Stocks, bonds and investment real estate are all tax deductible, he points out.
But he doesn't advise a particular form of investment, he says, and strongly suggests homeowners work with a financial advisor to come up with a suitable investment portfolio.
While Smith suggests the Manoeuvre is a good idea for any Canadian with a mortgage, he says it isn't for those who have difficulty living within their means, or those who have less than 20 per cent of their home paid down.
There are risks to investing, and investments do go up and down, Smith says, but adds he believes it is better to have home equity working for mortgage holders than not making them money.
The system in the United States, which provides too many tax deductions, isn't ideal either, though, he says.
He'd like to see the States develop a similar stance to Canada, he adds.
"Then we could go there, and take the Smith Manoeuvre to them."
Smith is coming to Burnaby's British Columbia Institute of Technology campus on Thursday to give a seminar on the Smith Manoeuvre.
"I just figure not all Canadians are using the Smith Manoeuvre yet, so that's why I'm coming to Burnaby," he says, adding that while many people have used it since he introduced it 30 years ago, some are still wary when they see the amount of money that can be saved.
"In some respects, the numbers are so big that people think it's too good to be true," Smith says.
The seminar takes place at BCIT, at 3700 Willingdon Ave. in the SW1 building in room 1205 at 7 p.m. on Aug. 4. Those interested in registering can call 604-218-3005 with their contact information.
