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

Get Protection From A Pre-Approval

By Diane Gogar • March 5, 2025
There is no doubt about it, buying a home can be an emotional experience. Especially in a competitive housing market where you feel compelled to bid over the asking price to have a shot at getting into the market. Buying a home is a game of balancing needs and wants while being honest with yourself about those very needs and wants. It’s hard to get it right, figuring out what’s negotiable and what isn’t, what you can live with and what you can’t live without. Finding that balance between what makes sense in your head and what feels right in your heart is challenging. And the further you are in the process, the more desperate you may feel. One of the biggest mistakes you can make when shopping for a property is to fall in love with something you can’t afford. Doing this almost certainly guarantees that nothing else will compare, and you will inevitably find yourself “settling” for something that is actually quite nice. Something that would have been perfect had you not already fallen in love with something out of your price range. So before you ever look at a property, you should know exactly what you can qualify for so that you can shop within a set price range and you won’t be disappointed. Protect yourself with a mortgage pre-approval. A pre-approval does a few things It will outline your buying power. You will be able to shop with confidence, knowing exactly how much you can spend. It will uncover any issues that might arise in qualifying for a mortgage, for example, mistakes on your credit bureau. It will outline the necessary supporting documentation required to get a mortgage so you can be prepared. It will secure a rate for 30 to 120 days, depending on your mortgage product. It will save your heart from the pain of falling in love with something you can’t afford. Obviously, there is nothing wrong with looking at all types of property and getting a good handle on the market; however, a pre-approval will protect you from believing you can qualify for more than you can actually afford. Get a pre-approval before you start shopping; your heart will thank you. If you’d like to walk through your financial situation and get pre-approved for a mortgage, let’s talk. It would be a pleasure to work with you!

Is It the Right Time to Refinance? 5 Signs You Should Consider It

By Diane Gogar • February 27, 2025
Refinancing your mortgage can be a smart financial move, but how do you know if it’s the right time? Whether you’re looking to lower your monthly payments, access home equity, or consolidate debt, refinancing can offer valuable benefits. Here are five key signs that it might be the right time to refinance your mortgage in Canada. 1. Interest Rates Have Dropped One of the most common reasons Canadians refinance is to secure a lower interest rate. Even a small decrease in your mortgage rate can lead to significant savings over time. If rates have dropped since you took out your mortgage, refinancing could help you reduce your monthly payments and save thousands in interest. ✅ Tip: Check with your mortgage broker to compare your current rate with today’s market rates. 2. Your Financial Situation Has Improved If your credit score has increased or your income has stabilized since you first got your mortgage, you might qualify for better loan terms. Lenders offer lower rates and better conditions to borrowers with strong financial profiles. ✅ Tip: If you’ve paid off debts, improved your credit score, or increased your savings, refinancing could work in your favour. 3. You Want to Consolidate High-Interest Debt Carrying high-interest debt from credit cards, personal loans, or lines of credit? Refinancing can help consolidate those debts into your mortgage at a much lower interest rate. This can make monthly payments more manageable and reduce the overall cost of borrowing. ✅ Tip: Make sure the savings from refinancing outweigh any prepayment penalties or fees. 4. You Need to Free Up Cash for a Major Expense Many Canadians refinance to access their home’s equity for renovations, education costs, or major life expenses. With home values rising in many areas, a refinance could help you tap into that value while still keeping manageable payments. ✅ Tip: Consider a home equity line of credit (HELOC) if you need flexible access to funds. 5. Your Mortgage Term is Ending, and You Want Better Terms If your mortgage is up for renewal, it’s the perfect time to explore refinancing options. Instead of simply accepting your lender’s renewal offer, compare rates and terms to see if you can get a better deal elsewhere. ✅ Tip: A mortgage broker can help you shop around and negotiate better terms on your behalf. Is Refinancing Right for You? Refinancing isn’t always the best move—there can be penalties for breaking your current mortgage, and not all savings are worth the switch. However, if you relate to any of the five signs above, it’s worth discussing your options with a mortgage professional. Thinking about refinancing? Let’s chat and find the best option for you!
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