Investment Loans

Should You Borrow to Invest? (It’s not as Wild as It Sounds)

Why would anyone borrow money to invest?

Well, let’s break it down, Prosperity style:

Man with his two dogs on a sunny, grassy field.

Bigger RRSP = Bigger Tax Refund

When you contribute to your RRSP, you lower your taxable income. And who doesn’t love paying less tax? By taking out an investment loan and making a larger contribution, you could score a bigger tax refund. Some folks even use that refund to pay down the loan faster. Smart, right?

Get in the Game Sooner

Ever heard the saying, "The best time to plant a tree was 20 years ago. The second-best time is now"? The same goes for investing. By using a loan, you can start growing your nest egg right away instead of waiting for years to save up a lump sum.

Low Interest Rates = Opportunity Knocking

Borrowing to invest can make financial sense if the returns on your investment are higher than the interest you’re paying, that’s money working in your favor.

Is It Right for You?

Before you sprint to the nearest branch, let’s be real, borrowing to invest isn’t for everyone. It works best if you’ve got a stable income, a long investment horizon, and the stomach to handle market ups and downs

So, is an investment loan your ticket to a beefier RRSP or a bigger financial future?

Let’s find out together. Drop by your local branch or give us a call. No suits required—just your questions and maybe a good story to share while you’re here.

Talk to an Advisor