- Joined
- Aug 19, 2011
- Messages
- 183
Recently, my bank offers me a Line of credit at 1:1 ratio using cash as a collateral. The term is like this: the cash has to sit in the bank investing in a fixed term GIC, right now, it is 2-2.5%. Then they loan you a LOC at prime rate, you can use this money to do whatever you want, if for investing purpose, certainly the interest expenses will be tax deductible.
I do not see any benefits to people like real restate investors? The bank is saying that the cash is safe at least, and why I want to have the cash siting in a 2% GIC? I am still not convincing.
Do any of you experience this before?
Thanks
I do not see any benefits to people like real restate investors? The bank is saying that the cash is safe at least, and why I want to have the cash siting in a 2% GIC? I am still not convincing.
Do any of you experience this before?
Thanks