Author Topic: Get a mortgage to invest with?  (Read 364 times)

red_pill

  • Bristles
  • ***
  • Posts: 280
  • Location: Canada
Get a mortgage to invest with?
« on: March 16, 2020, 08:08:02 AM »
So Iím one of those mortgage freedom guys.  Paid it off aver a year ago and then transitioned to loading up my TFSAs and moving on to taxable accounts. For the last several months I was feeling foolish for having paid off my mortgage early as I saw that investing would have netted far greater returns. Well, until recently.

So with the markets taking such repeated kicks in the teeth and interest rates going down to unimaginably lows, I canít help but think Iíve been granted a second chance.

I was thinking of taking a relatively small mortgage that I can pay off in 5 years with a bit of my cash flow and investing it. 

Can anyone offer some perspective on this? What risks do I need to think about? How and when would I implement this?

Given my risk adverse nature I may just stay mortgage free and aggressively redirect my cash flow into investments, since that allows me to scale my purchases as other needs dictate, but I also like the idea of grabbing a big chunk at such rock bottom prices (or at least rock bottom compared to the highs we saw).