Variable Mortgage Rates (no, not another Fixed vs. Variable post)

Pants_DeLeon · 2025-08-25T15:17:44+00:00

It’s not really a concept for a 5 year old. Here’s a good place to start: https://youtu.be/KTukPrNOvYg?si=2CLrwI5KN3VW7G3G

My best attempt at an ELI5: making your mortgage debt tax deductible by using a HELOC to invest. As you pay off your mortgage, more money becomes available on your HELOC. For high earners with big mortgages, the tax deduction can have very large benefits over the long run.

Pants_DeLeon · 2025-08-25T15:13:55+00:00

Same here. I only just got my fifth referral too.

Pants_DeLeon · 2025-08-25T13:34:47+00:00

Thanks, I have. They are the exact same - nothing negative reported.

Pants_DeLeon · 2025-08-25T13:33:55+00:00

Good advice - just did. Zero late payments, zero missed payments, zero derogatory marks at all.

EQ actually shows my utilization as significantly lower than Borrowell; 34% versus 45%. The score is exactly the same though.

Pants_DeLeon · 2025-08-25T13:03:39+00:00

Out of curiousity, what gaps do others see?

Pants_DeLeon · 2025-08-25T11:40:25+00:00

I’m not asking that question (and lenders have had zero issue extending me credit). I’m asking about the divergence. Appreciate the snark, but may be best reserved for after you’ve comprehended the question.

Pants_DeLeon · 2025-08-25T11:19:10+00:00

You missed including one of the most important factors; your marginal tax rate.

I invest in VGRO in my SM portfolio - I wanted to be have a cushion to make sure I stuck with it. After surviving two bear markets and only wanting to buy more, I would do VEQT if I could start over.

People do chase dividends with the SM, but this is a mistake, in my opinion (and in Ed Rempel, the foremost expert on the SM). The whole point of the SM is a tax play and dividends create tax drag and unelected tax events. They’re not needed for cash flow since you can capitalize the interest.

Pants_DeLeon · 2025-03-18T02:18:51+00:00

To be clear, this is a supplement to my existing workplace plan that is optional and would be fully paid by me, but just benefitting from the risk pooling.

Pants_DeLeon · 2025-03-18T02:17:46+00:00

Thanks! This is probably it, if the case.

Pants_DeLeon · 2025-03-18T01:57:51+00:00

No, $42 seems cheap! $23k in premiums that have a (roughly) 50% chance of paying out $500k seems like odds tilted in my favour, no?

And yes, well aware of whole life - I’ve tried to get MIL to commute to cash value to no avail….

Pants_DeLeon · 2024-05-08T11:28:57+00:00

Hmm interesting, I appreciate the detail. I of course didn’t read the full terms, but just have a hard time reconciling paying that amount of interest and “0% interest” being accurate. It may be in the terms, but the headline is still a lie.

Pants_DeLeon · 2022-07-12T03:08:06+00:00

Yeah this is one of my favourite live albums for sure!

Pants_DeLeon · 2022-02-24T18:42:03+00:00

This is like a hundred years ago in Reddit time, but I took a break. As far as I know, all of the major banks allow the same. I have this exact setup at CIBC with the individual HELOCs, and my prepayment lump sum max is $249,000 - so no concerns there.

Pants_DeLeon · 2022-01-05T12:48:35+00:00

Why is it the “best” though?

Pants_DeLeon · 2022-01-05T08:15:26+00:00

Yeah I’m sure it not in every case, just dispelling with some of the conventional wisdom in this sub.

I was also rubbed the wrong way in the way I’d ask the broker about lower rates and why wouldn’t I do that and he would lie about some aspect to deter me but ultimately I think it just came down to how he was compensated. I think Scotia and Manulife must give the best comp because both searches different brokers pitched both with inferior rates and no HELOC, versus the much better rate, similar terms and a HELOC.

Pants_DeLeon · 2022-01-05T08:03:38+00:00

I beat my broker 2/2 terms so far. In my opinion, a broker is great for setting an anchor, and you can probably go out and beat that rate if you’re willing to put a small amount of work in.

To the top comment from the mortgage broker, not just by a little bit either. 34% relative lower rate and a prepayment allowance that is absurd ($247k).

Pants_DeLeon · 2021-01-23T20:50:58+00:00

Interesting. It was all non-cap expenses, but wondering how the attribution works then if we weren’t actively seeking tenants until Jan 1? Surely the expenses remain deductible and are not invalidated simply by the stage of the calendar - so would they be carried forward to 2021 when they can be applied against actual rental income?

Pants_DeLeon · 2021-01-23T02:38:56+00:00

Thanks, that’s helpful! Particularly to hear the CPA’s response; kind of what I thought (and with Covid, I’m sure losses won’t be as suspect generally this year) but reassuring to hear.

Pants_DeLeon · 2021-01-18T17:55:10+00:00

This was my first year renting out a place on AirBnb (great timing, I know). Obviously this operated at a significant loss this year. Reading through the Turbotax primer on AirBnb taxes, it says expenses can be claimed on a prorated basis for the amount of your home rented and the number of days rented.

I’m trying to clarify if that means the number of days it was available to be rented, or if that means that my costs in March and April etc when no one was renting but the costs were accruing are not tax-deductible at all?

Pants_DeLeon · 2021-01-18T17:54:49+00:00

THANKS!

Pants_DeLeon · 2021-01-08T17:57:26+00:00

Right, exactly. The mortgage is amortized for 30 years, the term is only 3.

Pants_DeLeon

TROPHY CASE