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Thread: Loan vs Savings

  1. #1
    CaNewbie
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    I'm trying to make some moves in my business and I was thinking . . .

    Should I get a loan or use my TFSA (Around 30k) to invest in my current business.

    The advantage of the loan would be I will have more cashflow.

    I was thinking about getting a secured loan using my TFSA as collateral or just get a line of credit.

    Both from a TD Bank.

    What would you do?

    I'm currently 100% Debt free.

    Thx!
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    Ciel likes this.


  2. #2
    University Couponer
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    Well, I don't know how much my input will help from a university student but I was in a similar situation when purchasing a car.

    I had enough in cash to pay for the car outright but I personally decided to get an Educational Line of Credit to pay for it, saving the cash in my savings just in case I ever needed to pull from that. My interest rate on the line isn't terrible (4.45%), I just wanted to have the cash left in case I needed it for the rest of my time at university.

    Might not have been the smartest move, my father doesn't see my logic, but it is what it is and I'm glad I did it.

    Just my two cents on it, hope it even helps a little
    Ciel likes this.

  3. #3
    Senior Canuck Arjon's Avatar
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    As someone who started two businesses and worked in a position where I trained / advised over 100 small start-ups, I believe there's no universal best answer. It's a matter of weighing the pros and cons, which tends to involve a fair degree of subjectivity in determining the weights to assign to various considerations. Accordingly, while it can be tempting to think that the lowest-cost option is best, that's not necessarily so.
    Ciel likes this.

  4. #4
    Mastermind Shwa Girl's Avatar
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    Quote Originally Posted by ozarkboy View Post
    I'm trying to make some moves in my business and I was thinking . . .

    Should I get a loan or use my TFSA (Around 30k) to invest in my current business.

    The advantage of the loan would be I will have more cashflow.

    I was thinking about getting a secured loan using my TFSA as collateral or just get a line of credit.

    Both from a TD Bank.

    What would you do?

    I'm currently 100% Debt free.

    Thx!
    I see this is your first post.
    Welcome to Smart Canucks
    Ciel likes this.

  5. #5
    CaLoonie
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    debt free. good on you. do a mix of tfsa, rrsp, and then maybe small investments. (no bitcoin)
    Ciel likes this.

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