I’m a first time home buyer in Canada. I need to pull together ~40K to cover the down payment on a house. I have investments which would cover this cost (mostly in total US market index funds). However, since the stock market is down ~20% since the start of the year and the interest rate on my line of credit is only ~5.5% I’m wondering if it makes more sense to pay the downpayment with my line of credit, and wait for the market to rebound before cashing out. Does this make financial sense?/ can one put home downpayments on unsecured lines of credit? It feels a little bit like I’m over-leveraging myself and taking on debt on top of debt, but the numbers seem to justify it in this case.
(Note: I have looked at similar questions that have been posted, but most of these relate to people buying a second house and taking out a HELOC or not having sufficient funds to cover the downpayment without a line of credit).