23 - HELOC Strategies, Mortgage Renewals, and Why MER Fees Matter
Two Girls Investing Podcast · Two Girls Investing Co.
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Show Notes
In this TGIF Two Girls Investing Friday episode, the hosts discuss cold March weather before diving into mortgages and HELOCs as many Canadian mortgages come up for renewal. They review responsible HELOC uses like debt consolidation, and explain the Smith Maneuver concept of borrowing against growing home equity to invest, noting the risks of borrowing to invest if markets decline and the need to repay the HELOC. They also cover how investment-loan interest can be tax deductible in Canada when investing in a non-registered account, and mention rising (but still low) title/property fraud where having a HELOC lien may add protection. They describe an equity mortgage that automatically makes paid-down principal available via HELOC for uses like rental property down payments, then define MER (management expense ratio), contrasting high-fee mutual funds with lower-fee ETFs and how fees erode long-term returns.
00:00 Welcome to TGIF
00:34 March Weather Catchup
01:49 Mortgage Renewals and HELOCs
02:50 Smith Maneuver Explained
05:11 Risks of Borrowing to Invest
06:11 Tax Deductible HELOC Interest
07:16 Title Fraud and HELOC Protection
09:30 Equity Mortgage for Rentals
11:52 MER Investing Fees 101
16:04 Mutual Funds vs ETFs Fees
20:01 Next Episode and Wrap Up