Last time we discussed borrowing to invest in non-registered accounts.
This week, let's consider using borrowed money to fund a TFSA.
The obvious question is why bother when the loan interest is not tax deductible?
Here's a few good reasons, investing more early is better than investing a little at a time, and the growth in a TFSA will never be taxed upon withdrawal.
And, a more subtle reason is to use up one's TFSA room. Then when a withdrawal is made an equal amount can be deposited back into the account in the future.
Those of us born after 2008, all have $52,000 of contribution room. We not take advantage of it.
B2B offers TFSA loans and I've attached a brochure for your review.
Director of Wealth
Qualified Financial Services
416 786 4140