Efficiency Paying cash for house vs. mortgage
I can buy a house in cash (north of 1M) or put down a minimum of 35% and invest the rest.
If investing the rest, then I would need to withdraw/sell shares to keep up with the mortgage payments.
The mortgage rate is about 2.5% 2-year fixed.
My registered accounts are all maxed out, so most of my portfolio would go in taxable account; thinking HXT and HXS, so it would be taxed as capital gains if I were to sell them...
Another concern might be if in a couple years interest rates are higher and I want to pay it all off, then I'd withdraw the invested amount but would incur significant capital gains all at once?
Trying to see which would be better/more efficient. Please let me know if any more info needed.
If investing the rest, then I would need to withdraw/sell shares to keep up with the mortgage payments.
The mortgage rate is about 2.5% 2-year fixed.
My registered accounts are all maxed out, so most of my portfolio would go in taxable account; thinking HXT and HXS, so it would be taxed as capital gains if I were to sell them...
Another concern might be if in a couple years interest rates are higher and I want to pay it all off, then I'd withdraw the invested amount but would incur significant capital gains all at once?
Trying to see which would be better/more efficient. Please let me know if any more info needed.
Last edited by 00xx00 on Jan 26th, 2017 3:04 pm, edited 1 time in total.