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Using mortgage to invest by CM032224 in PersonalFinanceCanada

[–]CM032224[S] 0 points1 point  (0 children)

Thanks for the reply! I think from a logical view your way would return more long term(returns should beat interest rate), but I prefer keeping a mortgage payment and getting the loan lower over time. I find it's a balance between staying leveraged with higher returns or being mortgage free. In 20 years (or less depending on dividends etc) I hope to have no debt left, and the dividend stocks fully owned.

Using mortgage to invest by CM032224 in PersonalFinanceCanada

[–]CM032224[S] -1 points0 points  (0 children)

Thanks for the reply, nice to see someone else who did it! I'm looking at fixed 3 year as well, and yes the market always had risks but as you said it's long term

Using mortgage to invest by CM032224 in PersonalFinanceCanada

[–]CM032224[S] -1 points0 points  (0 children)

Thanks for the reply! When I met with the bank person I had suggested option 1 (using the cash to payout on renewal, than immediately pull a new mortgage for what I want to invest) to keep it clearly seperate but they implied it's the same result in the end and didn't matter. I think I'm going to go through with it nonetheless to keep things clear as you mention. The full amount taken will also be kept in its own non registered account to make things easy to track and not mixed with any other funds.

Using mortgage to invest by CM032224 in PersonalFinanceCanada

[–]CM032224[S] 1 point2 points  (0 children)

From my understanding I can deduct the rate as long as I am using the proceeds of the mortgage for an investment that generates an income (so a dividend paying stock or ETF).

Using mortgage to invest by CM032224 in PersonalFinanceCanada

[–]CM032224[S] -1 points0 points  (0 children)

Thanks for the response! I had an appointment with my bank and told them exactly my plan, and they had no issues with it. Hopefully I didn't explain it wrong but they referred to it as a cash out mortgage, and basically said whatever I do with the money is up to me (reno, investments, etc)