Dennis Colpitts could pay down the mortgage on his house in western Canada early if he wanted. He’s investing in the stock market instead — and in some cases borrowing to do so.

With a mortgage rate of 2.35%, Colpitts said it makes more sense to put his money into stocks or other investments that hold the potential for higher gains. He primarily invests in exchange-traded funds, including through a margin account, which allows him to borrow money from his broker to buy securities.

“I could liquidate all my stocks and ETFs and put them into my mortgage, but I don’t,” said Colpitts, 39, a technology consultant who lives with his wife and two children in Calgary. “I keep them with the hope of getting my 6 or 7% return.”  Read More…


  1. Borrowing to invest in stocks is perfectly normal and a perfectly reasonable strategy. I’ve done this many times during the hayday of high interest bank accounts (4%+).

  2. As long as you diversify your holdings one should be in good shape. So far for 2015 Indexes are up 3%.

  3. BUt wait a minute so people are going more into debt with the hope that they can get a return on it? But it doesnt seem like a sure thing so isn’t this a gamble?

  4. Can one claim interest on mortgage borrowing on their tax returns?

  5. Sounds like risking too much to me. What if the markets turn then you are not only out but now owe interest in the money you borrowed. Sounds too risky.

  6. I’m more impressed that mutual funds have reach $trillion level.

  7. We never learn. It was the same way in 2008 and now people have short memories and beginning to do the same. I did this once but quickly paid it back and glad i did.

  8. What if i am a person who can’t get a mortgage (don’t own a home). Then what are my options now?

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