Does borrowing to invest in RRSPs or other investments make sense?

THINK OUTSIDE THE BOX:  Make an informed decision!   I would highly recommend you speak with a seasoned Financial Planner or contact our office for a referral.

With RRSP season in full flight, a lot of your clients may be wishing they had funds available to invest in their RRSP. 

If used correctly, an RRSP investment can reduce your client’s income tax and at the same time, build wealth for their future. To take advantage, many Canadians are opting to use the equity in their homes to come up with sufficient funds to contribute to their RRSP each year.

 Ask your clients if they have large contribution room in their RRSP. If they do not have the funds available to invest, take the time to calculate the long-term cost-benefit savings of utilizing the equity in their home. In many cases, the compounding benefits of long-term investments and tax deferrals could outweigh the prepayment charges of their existing mortgage plus any carrying charges on their newly invested funds.

February 4, 2012  Optimum Mortgage



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