The advertising for the Manulife One mortgage is deceiving, especially the online calculator. If you are contemplating whether or not to get the M1 mortgage, then read over the article and you’ll see why it can be the more expensive choice. The biggest upside of the M1 is that there is a lot of flexibility for those with variable incomes, but again, there is a high premium to be paid for this benefit.
This explains how I plan to fund the little ones university education in about 18 years time. It’s a little bit of a different strategy for me as it is completely passive and uses 100% low cost index funds. The funds transition from mostly equities to bonds then to cash as it draws closer to withdrawal.
There have been numerous comments on the Smith Manoeuvre threads about how investments that distribute return of capital are not recommended with leveraged investing. The article will explain how return of capital works, why it can decrease your tax deduction on your investment loan, and how to get around it.