The Snowball Effect: How Compound Interest Can Skyrocket Your Wealth-Building Journey

Diane Gogar • April 24, 2023

Are you interested in building long-term wealth?

If so, you'll be amazed at this incredible financial tool that can help you achieve your financial goals.

When used in combination with a smart investment strategy such as the Smith Maneuver, you can leverage this powerful tool to create a passive income stream and achieve financial freedom.

Here are some key points to consider:

The Power of Compound Interest

Compound interest refers to the interest earned on both the initial investment and the interest that accumulates over time. This means that the longer you invest, the more interest you earn, and the more your investment grows. Essentially, your money snowballs and becomes a powerful wealth-building tool.

Here's How


Suppose you invest $10,000 today in a well-diversified portfolio that earns an average annual return of 8%. 

In 30 years, that $10,000 investment would be worth approximately $100,000, thanks to the power of compound interest.

Now, let's combine this with the Smith Maneuver strategy. 


The Smith Maneuver Strategy

Using the Smith Maneuver, you can create a tax-deductible investment loan using your mortgage, allowing you to invest in income-producing properties. 

By doing so, you can accelerate the power of compound interest and create a passive income stream that can provide you with financial security for the long term.


Building Long-Term Wealth

Compounding interest and the Smith Maneuver can help you build long-term wealth and achieve financial freedom.

As a mortgage agent and certified Smith Maneuver specialist, I can help you create a customized plan that suits your unique financial goals and helps you build wealth for the long term.

Let's Implement

Here's an actionable strategy to help you implement the Smith Maneuver:

  1. Speak with a certified Smith Maneuver specialist to determine if this strategy suits you.

    (That's me! Click here to schedule a FREE Smith Maneuver Strategy Call)

  2. If the strategy is suitable, ensure you have enough equity in your home to implement the Smith Maneuver.

  3. Obtain a secured line of credit that you can use to invest in income-producing properties.

  4. Use the secured line of credit to invest in properties that generate income.

  5. Use the rental income your properties generate to pay off your mortgage and secured line of credit.

  6. Repeat the process until you have created a passive income stream that provides financial security for you and your family.


If you're ready to start building wealth through compound interest and the Smith Maneuver, let's discuss how we can work together to achieve your financial success.

Book a call with me to strategize and create a customized plan that suits your unique financial goals and helps you build wealth for the long term.


DIANE GOGAR
MORTGAGE PROFESSIONAL
CONTACT ME

Your Guide To The A First Home Savings Account (FHSA)

By Diane Gogar • July 2, 2025
Dreaming of owning your first home? A First Home Savings Account (FHSA) could be your key to turning that dream into a reality. Let's dive into what an FHSA is, how it works, and why it's a smart investment for first-time homebuyers. What is an FHSA? An FHSA is a registered plan designed to help you save for your first home taxfree. If you're at least 18 years old, have a Social Insurance Number (SIN), and have not owned a home where you lived for the past four calendar years, you may be eligible to open an FHSA. Reasons to Invest in an FHSA: Save up to $40,000 for your first home. Contribute tax-free for up to 15 years. Carry over unused contribution room to the next year, up to a maximum of $8,000. Potentially reduce your tax bill and carry forward undeducted contributions indefinitely. Pay no taxes on investment earnings. Complements the Home Buyers’ Plan (HBP). How Does an FHSA Work? Open Your FHSA: Start investing tax-free by opening your FHSA. Contribute Often: Make tax-deductible contributions of up to $8,000 annually to help your money grow faster. Withdraw for Your Home: Make a tax-free withdrawal at any time to purchase your first home. Benefits of an FHSA: Tax-Deductible Contributions: Contribute up to $8,000 annually, reducing your taxable income. Tax-Free Earnings: Enjoy tax-free growth on your investments within the FHSA. No Taxes on Withdrawals: Pay $0 in taxes on withdrawals used to buy a qualifying home. Numbers to Know: $8,000: Annual tax-deductible FHSA contribution limit. $40,000: Lifetime FHSA contribution limit. $0: Taxes on FHSA earnings when used for a qualifying home purchase. In Conclusion A First Home Savings Account (FHSA) is a powerful tool for first-time homebuyers, offering tax benefits and a structured approach to saving for homeownership. By taking advantage of an FHSA, you can accelerate your journey towards owning your first home and make your dream a reality sooner than you think.

Deposit Lending And Bridge Financing

By Diane Gogar • June 25, 2025
Let’s say you have a home that you’ve outgrown; it’s time to make a move to something better suited to your needs and lifestyle. You have no desire to keep two properties, so selling your existing home and moving into something new (to you) is the best idea. Ideally, when planning out how that looks, most people want to take possession of the new house before moving out of the old one. Not only does this make moving your stuff more manageable, but it also allows you to make the new home a little more “you” by painting or completing some minor renovations before moving in. But what if you need the money from the sale of your existing home to come up with the downpayment for your next home? This situation is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing property and use it for the downpayment on the property you are buying. So now let’s also say that it’s a very competitive housing market where you’re looking to buy. Chances are you’ll want to make the best offer you can and include a significant deposit. If you don’t have immediate access to the cash in your bank account, but you do have equity in your home, a deposit loan allows you to make a very strong offer when negotiating the terms of purchasing your new home. Now, to secure bridge financing and/or a deposit loan, you must have a firm sale on your existing home. If you don’t have a firm sale on your home, you won’t get the bridge financing or deposit loan because there is no concrete way for a lender to calculate how much equity you have available. A firm sale is the key to securing bridge financing and a deposit loan. So if you’d like to know more about bridge financing, deposit loans, or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you.