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A Better Way to Build Your Savings With Investment Loans

May 28, 2020

Most investors need to save for a future retirement. Most likely you are aware of RRSPs, TFSAs, and their benefits and limitations. If you have a time horizon of 10 years or more before you plan to take income from your investments, potentially better way to tax-efficiently reach your savings goals. You can read more about this strategy on the B2B Bank Page on Borrowing to Invest.  Potential benefits of this strategy include:

Mortgage Interest Deductibility

If you borrow to invest with potential of earning income, the interest is normally tax-deductible. If you borrow against your home equity as you pay down your original loan, you can effectively convert your mortgage to an investment loan.

Why Investment Loans? 

When a consumer takes out a loan to purchase a vehicle, they expect the asset they are purchasing to go depreciate. When an investor takes out an investment loan, they purchase an investment portfolio they anticipate will increase in value – though of course there are no guarantees.

Contact us to discuss whether an investment loan program would help you achieve your financial goals.

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