RE:Should I borrow to buy BNS?Take the loan for BNS shares through your margin account, doing so makes the load "eligible".. In other words, you will get a partial rebate on the interest you paid come tax time since the interest was for an investment loan...
Carl wrote:"At the current share price (79.75), BNS' dividend yeld exceeds 5%. I can draw funds from a secured line of credit at 2.5% (variable rate). I would say that it is fairly safe tp borrow at 2.5% to invest at 5%. The downside risks are a steep increase or my borrowing rate and a continuing slide of the market. Am I missing anyrhing? Is the risk too great? Any thoughts?"