In this episode of The Wisdom, Lifestyle, Money Show, host Scott Dillingham explores smart ways to leverage assets for investments like real estate, stocks, or mutual funds, emphasizing calculated leverage to ensure returns exceed costs. He warns against credit cards (high-risk balance transfers) and unsecured lines of credit (6-14% rates, credit score hits), favoring gifts from family (viable for rentals with select lenders), home refinancing (up to 80% equity at low rates ~2-3% amid 2025 BoC cuts to 2.25%), interest-only mortgages (lowest payments, 65% LTV), and secured lines (prime +0.5-1%, penalty-free payoffs). Advanced options include margin accounts (5-6% rates for stocks, but callable), reverse mortgages for investors (new 2025 products like Bloom Finance's fixed-rate, no payments until death/refinance, 40% LTV), and RSP loans (4-8% rates, collateralize existing RSPs for additional investments without cashing out).
Scott stresses consulting accountants for tax implications (e.g., interest deductibility) and using pros for stock picks. In 2025's recovering market (CMHC forecasts modest dips then 2026 growth, sustainability focus), prioritize strategies building wealth via OPM (other people's money) without overleveraging. Ideal for Canadian investors eyeing real estate amid suburban rental trends or equities in a low-rate environment—avoid pitfalls by running numbers for positive yields.
Host Bio
Scott Dillingham is the founder and CEO of LendCity Mortgages, a leading online mortgage brokerage helping real estate investors secure financing across Canada. As host of The Wisdom, Lifestyle, Money Show, he shares insights from his sales-to-entrepreneur journey, including building a portfolio of 8 properties with 12 units. Based in Windsor, Ontario, Scott focuses on creative lending, personal growth, and calculated strategies to achieve financial independence. Join his investing club at invest.lendcity.ca for exclusive tips, or visit lendcity.ca for mortgage consultations.
Scott Dillingham is the founder and CEO of LendCity Mortgages, a leading online mortgage brokerage helping real estate investors secure financing across Canada. As host of The Wisdom, Lifestyle, Money Show, he shares insights from his sales-to-entrepreneur journey, including building a portfolio of 8 properties with 12 units. Based in Windsor, Ontario, Scott focuses on creative lending, personal growth, and calculated strategies to achieve financial independence. Join his investing club at invest.lendcity.ca for exclusive tips, or visit lendcity.ca for mortgage consultations.
Key Takeaways
- Avoid credit cards and unsecured lines (6-14% rates, credit hits); use for emergencies only, not investing.
- Family gifts work for rental down payments with select lenders—great starter if available.
- Refinance homes to 80% equity at low 2025 rates (~2-3% post-BoC cuts to 2.25%) for flexible investing funds.
- Interest-only mortgages offer minimal payments (65% LTV), ideal for dividend stocks covering costs.
- Secured lines provide penalty-free payoffs (prime +0.5-1%), but cap at 65% LTV and watch utilization for credit health.
- Margin accounts enable unsecured stock borrowing (5-6%), but banks can recall amid market dips—high-risk for 2025 volatility.
- Reverse mortgages for investors (new fixed-rate options like Bloom's in 2025) mean no payments until death/refinance (40% LTV), per CMHC growth trends.
- RSP loans (4-8%) collateralize existing RSPs for extra investments without cashing out—double returns if RSPs yield well.
- (00:03) - Introduction to Investment Strategies
- (08:17) - Rare Investment Strategies Uncovered
- (12:34) - Leveraging RSPs for Investment Growth
- (15:16) - The Importance of Working with Professionals
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