Cash Damming

FAQs

What is cash damming?

Rental cash damming is a smart money flow strategy for homeowners who have a mortgage on their principal residence and rental income coming in. It changes the order of how you use your money so every dollar works harder for you.

Instead of using rent to pay rental bills directly, you use the rental income to pay down your personal mortgage first. Your personal mortgage is not tax deductible, so every extra payment saves you a lot of interest and shortens your amortization.

Then you use a HELOC to pay for the rental property costs like the rental mortgage, strata fees, insurance, repairs, and utilities. Since the HELOC is used for investment related expenses, the interest becomes tax deductible.

How does it save money?

Is cash damming risky?

Who should consider cash damming?

Where can I learn more?

No. The strategy is not risky when set up correctly.

You already have the rental expenses.
You already have the mortgage on your home.
You already have the rental income.

Cash damming simply moves the money in a smarter order.
You are not adding new debt or taking on new risk.
You are turning the same dollars into a more efficient system that reduces interest, improves tax planning, and speeds up your mortgage payoff.

When the structure is set up properly with the right lender product, it is safe, simple, and fully supported by CRA rules for tracing and deductibility.

If you want a clear step by step explanation, you can visit the rental cash damming funnel where you will find videos, examples, and simple guides that show exactly how the strategy works.

The link will take you to my full walkthrough.

Rental cash damming saves money in three big ways.

You shorten your mortgage
Your rental income goes toward your personal mortgage, which cuts the balance faster and reduces interest you can never write off.

You save interest over time
Many clients save thousands and even hundreds of thousands because they remove years from their mortgage.

You create tax deductible debt
The HELOC used for rental expenses becomes tax deductible, which lowers your overall cost and improves long term cash flow.

Rental cash damming is a great fit for:

• Homeowners who have a mortgage on their principal residence
• Anyone who earns rental income from a suite, condo, townhouse, house, or investment property
• People who want to pay off their home sooner
• Investors who want to improve long term tax efficiency
• Homeowners who want their money to work harder without increasing their income

If you have a home with a mortgage and you receive rental income, cash damming can be a major advantage.

Understanding Cash Damming

Cash damming rearranges your income flow to pay down your mortgage faster, saving you years and thousands in interest.

How It Works

Benefits

By using your rental income first on your mortgage, then covering expenses with a HELOC, you accelerate payoff and reduce interest costs.

How It Works

Learn how cash damming reorders your payments to save interest and time.

Step One

Use rental income first to pay down your personal mortgage faster.

Step Two

Cover rental or expenses with a home equity line of credit (HELOC).

This strategy can cut years off your mortgage and save thousands.

Get Started

Learn More about Cash Damming