Using a LOC to fund investment
Hi everyone,
Quick question regarding using line of credit to fund investments. I got secured TD loc based on my investments with them. I need it for the next few months to pay off some large expenses but after that I will just have it sitting there. The loc is at 4.75% and my investment portfolio has been very steady in the last few years at returning 6% or more. Would it make sense to use the loc to fund investments? I believe there is a tax break on the interest paid on loc and if I invest it in Canadian ETFs then the return from those will also be tax deductible. What do you think?
Background: TFSA is maxed out, nothing in RRSP, no debts.
Quick question regarding using line of credit to fund investments. I got secured TD loc based on my investments with them. I need it for the next few months to pay off some large expenses but after that I will just have it sitting there. The loc is at 4.75% and my investment portfolio has been very steady in the last few years at returning 6% or more. Would it make sense to use the loc to fund investments? I believe there is a tax break on the interest paid on loc and if I invest it in Canadian ETFs then the return from those will also be tax deductible. What do you think?
Background: TFSA is maxed out, nothing in RRSP, no debts.