Does Borrowing to Invest Make Sense with High Interest Rates?

Should you borrow to invest?

With interest rising 4.5% recently, does it still make sense?

Spoiled with low interest rates so low for many years, leverage seemed so obvious with a credit line at 3% and tax-deductible, while getting the growth of the stock market.

As a fee-for-service financial planner, and an expert on the Smith Manoeuvre strategy and effective investing, my latest podcast episode will give you my insight.

You’ll learn:

  • How to borrow to invest (“leverage”) effectively.
  • What happened with leverage in past periods of high interest rates?
  • How high can interest rates go & borrowing to invest is still beneficial?
  • Rule of thumb for breakeven point of borrowing to invest.
  • What is the mindset you need to borrow to invest effectively?
  • What is the best tax deduction after RRSP for high income people?

I hope you enjoy it!


Planning With Ed


Ed Rempel has helped thousands of Canadians become financially secure. He is a fee-for-service financial planner, tax  accountant, expert in many tax & investment strategies, and a popular and passionate blogger.

Ed has a unique understanding of how to be successful financially based on extensive real-life experience, having written nearly 1,000 comprehensive personal financial plans.

The “Planning with Ed” experience is about your life, not just money. Your Financial Plan is the GPS for your life.

Get your plan! Become financially secure and free to live the life you want.


  1. Ed Rempel on June 13, 2023 at 12:08 AM

    Hi Peter,

    I’m glad you found it helpful.

    Yes, it may not make sense to borrow to invest if interest rates are really high, say over 15%, but they are nowhere close to that yet.


  2. PETER HOOIVELD on April 25, 2023 at 7:15 PM

    Thanks as always for your insights Ed! Of course the question of does it make sense to borrow to invest while interest rates are “high” (not really, as you point out) has been occurring to me, but I’m glad to see there’s still room for them to increase and not be threatened by that.

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