Usually, people who chose LOC, instead of conventional mortgage, are capable of paying off much sooner. Overall, they will save on interest costs. Whereas typical conventional mortgage has payment limit, such as maximum 20% lump-sum payment per year.
For investment purpose, you may take out from LOC account where you just made a payment. The interest you paid to the bank is eligible for deduction from your investment earnings. It is a tax saving strategy for choosing a LOC rather than amortized payment, of course, providing that you have somewhere to invest and make money.
For investment purpose, you may take out from LOC account where you just made a payment. The interest you paid to the bank is eligible for deduction from your investment earnings. It is a tax saving strategy for choosing a LOC rather than amortized payment, of course, providing that you have somewhere to invest and make money.