Smart Leverage, Real Results - How We’re Paying Down Our Mortgage Faster Without Spending a Cent

By: Felix Diaz, P. Eng.

I’ve always been financially cautious. I work hard, save steadily, and avoid anything that feels speculative. So when my wife—who’s not just my partner but a financial advisor—suggested we use our home equity to invest in a segregated fund, I hesitated.

“This is the biggest investment of our life,” I told her. “What if something goes wrong?”

She didn’t push. She just looked at me and said,

“It’s big, yes. But we’re not guessing—we’re building a strategy.”

Skepticism Meets Strategy

I dove into research. Late nights with spreadsheets, interest rate comparisons, fund performance charts, insurance guarantees, and tax codes. Every scenario—best-case to worst—lived on my screen.

Then I learned something pivotal: borrowing to invest in a non-registered account allows you to claim the interest paid on the loan as a tax deduction—a game-changer if the borrowed funds generate income.

We chose a segregated fund with a 75/75 guarantee, meaning 75% of the original investment would be protected at maturity and upon death. Not bulletproof, but a meaningful cushion if markets turned rough.

To be absolutely sure, I took everything I’d calculated—my assumptions, performance projections, tax angles—and ran it past a senior advisor. Someone with decades of experience who could challenge my thinking and poke holes in the plan. They validated my numbers, my structure, and most importantly, confirmed that my risk controls were solid.

That final check gave me the clarity I needed: I wasn’t gambling—I was preparing.

And if things didn’t go according to plan? I knew I could withdraw the investment and use the proceeds to pay off the HELOC. I had options. I had a safety valve.

Starting the Plan

We accessed $100,000 through our HELOC—but we didn’t use a single dollar from our own pockets.

• My wife contributed to her TFSA, maximizing her room for tax-free growth.

• I invested in a non-registered segregated fund, structured to compound quietly while allowing us to deduct interest payments on our taxes.

No budget changes. No stress. Just discipline and strategy.

Three Years In

Now, three years into the plan, our segregated fund has grown 34%. That’s $134,000 quietly working for us—while our own savings remain untouched.

We haven’t withdrawn any gains yet. We’re letting it compound—exactly as planned. And year after year, we claim the HELOC interest on our taxes, reducing our taxable income while the investment builds value.

Meanwhile, the TFSA continues to grow tax-free—clean, simple, and completely hands-off. It’s the ideal complement to our leveraged approach.

Staying Grounded

Markets aren’t perfect. First half of this year dipped. But that’s okay. History shows that over 10 years or more, investments like these tend to perform well. Our mortgage is a long-haul commitment anyway—so building this strategy on a long-term horizon made perfect sense.

And with the 75/75 guarantee, there’s a floor beneath us. Even if markets misbehave, we’re not falling off a cliff—we’re floating on a cushion.

What This Journey Has Taught Me

• Fear doesn’t mean stop—it means prepare thoroughly and act with intention.

• Leverage can be powerful when paired with protection, discipline, and professional validation.

• A 75/75 segregated fund isn’t just an investment—it’s a strategy built for peace of mind.

• The best financial move I made was trusting the plan, trusting the advisor beside me, and getting independent confirmation from a senior expert.

• And if it ever stops working? I have an exit. I can withdraw, settle the loan, and move on—with zero regrets.

We didn’t stretch our budget. We stretched our mindset. And three years in, this strategy continues to work silently, powerfully, and without compromise.

Let’s Build a Plan That Works for You

Whether you're just starting your financial journey or looking to refine your strategy, we're here to help—with education, not pressure.

We believe that informed decisions lead to empowered lives. If you’re curious about how financial literacy can shape your future, or if you want to explore strategies tailored to your goals, we’d love to connect.

Joan Diaz - Licensed Financial Advisor

Call Us: (587) 429-7816
Email:Jhoanne.Diaz@forthrightltd.com
Or simply fill out our contact form—we’ll get back to you within one business day.

Let’s start a conversation. Let’s build your confidence. Let’s create a plan that works for you.

Disclaimer:
This blog reflects the personal experience and perspective of the author, who is a licensed financial advisor. The content is intended for informational and educational purposes only and should not be considered personalized financial, investment, or tax advice. Every financial situation is unique, and strategies discussed here may not be suitable for everyone. Before making any financial decisions—especially those involving leverage, home equity, or investment products like segregated funds—please consult with a qualified financial advisor or tax professional. Forthright Group and the author disclaim any liability for actions taken based on this content.