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Seems the mortage term difference is enough to make this more Canadian-specific
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Chris W. Rea
Chris W. Rea
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I'm wondering if this investment strategy would work:

  1. I get a mortgage loan for $300K at a 3% rate (realistic for the current 5-year fixed mortgage rates here in Canada).

  2. I invest the proceeds in a low-fee index fund, such as Vanguard's Total Stock Market Index.

  3. I use the interest to cover the mortgage payments, and invest the rest of the returns.

This looks like it could work. Am I missing anything?

Thanks!

I'm wondering if this would work:

  1. I get a mortgage loan for $300K at a 3% rate (realistic for the current rates here in Canada).

  2. I invest the proceeds in a low-fee index fund, such as Vanguard's Total Stock Market Index.

  3. I use the interest to cover the mortgage payments, and invest the rest of the returns.

This looks like it could work. Am I missing anything?

Thanks!

I'm wondering if this investment strategy would work:

  1. I get a mortgage loan for $300K at a 3% rate (realistic for current 5-year fixed mortgage rates here in Canada).

  2. I invest the proceeds in a low-fee index fund, such as Vanguard's Total Stock Market Index.

  3. I use the interest to cover the mortgage payments, and invest the rest of the returns.

This looks like it could work. Am I missing anything?

Thanks!

Tweeted twitter.com/#!/StackFinance/status/596438094200578049
edited title
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Chris W. Rea
Chris W. Rea
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Pros/cons of gettingborrowing money using a mortgage loan and investing the moneyit in a low-fee index fund?

deleted 14 characters in body; edited tags; edited title
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Chris W. Rea
Chris W. Rea
  • 31.8k
  • 17
  • 103
  • 190

Use a Pros/cons of getting mortgage to investloan and investing the money in low-fee index fund?

I'm, wondering if this would work??:

  1. I get a mortgage loan for $300K at a 3% rate (a bit highrealistic for the current rates here in Canada).

  2. I use the $300K to invest the proceeds in a low fee-fee index fund: http://www.morningstar.com/funds/XNAS/VTSMX/quote.html, such as Vanguard's Total Stock Market Index.

  3. I use the interest to paycover the mortgage feespayments, and continue to invest the rest of the returns.

This looks like it could work - am. Am I missing anything?

Thanks!

Use a mortgage to invest?

I'm, wondering if this would work??

  1. I get a mortgage for $300K at a 3% rate (a bit high for the current rates here in Canada)

  2. I use the $300K to invest in a low fee fund: http://www.morningstar.com/funds/XNAS/VTSMX/quote.html

  3. I use the interest to pay the mortgage fees, and continue to invest the rest of the returns.

This looks like it could work - am I missing anything?

Thanks!

Pros/cons of getting mortgage loan and investing the money in low-fee index fund?

I'm wondering if this would work:

  1. I get a mortgage loan for $300K at a 3% rate (realistic for the current rates here in Canada).

  2. I invest the proceeds in a low-fee index fund, such as Vanguard's Total Stock Market Index.

  3. I use the interest to cover the mortgage payments, and invest the rest of the returns.

This looks like it could work. Am I missing anything?

Thanks!

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ramav
ramav
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