HELOC, TFSA, Investment Charges, and MAW150 (Global Small Cap)
Hi all,
I've been reading the forum diligently to better understand where I would sit with this scenario, but I can't quite figure it out...
I have a HELOC with TD Bank that allows me to borrow money at TD Prime + 0.5%. I was thinking about borrowing $5,000-$10,000, purchasing MAW150 (Global Small Cap), and only paying ~$100/mo to service the loan.
My big question is: Is this better held in a TFSA or non-registered account?
I see lots of advice to use non-registered accounts for investment loans so that I can deduct the interest expense, but if I do that, I still have to pay capital gains tax when I eventually sell the investment in years. But with a TFSA, I wouldn't need to do that.
Also, is MAW150 an appropriate investment for being able to deduct interest expenses?
Thanks!
I've been reading the forum diligently to better understand where I would sit with this scenario, but I can't quite figure it out...
I have a HELOC with TD Bank that allows me to borrow money at TD Prime + 0.5%. I was thinking about borrowing $5,000-$10,000, purchasing MAW150 (Global Small Cap), and only paying ~$100/mo to service the loan.
My big question is: Is this better held in a TFSA or non-registered account?
I see lots of advice to use non-registered accounts for investment loans so that I can deduct the interest expense, but if I do that, I still have to pay capital gains tax when I eventually sell the investment in years. But with a TFSA, I wouldn't need to do that.
Also, is MAW150 an appropriate investment for being able to deduct interest expenses?
Thanks!