There can be tax advantages to borrowing for investment purposes. For example, if you borrow to invest in income producing investments, like dividend paying stocks or rental property, you can write off the interest as an expense. So, if you paid $6,000 in interest payments for the year, and you have a marginal tax rate of 40%, you could get back $2,400 of it. Every situation is different so be sure to consult with your accountant or tax advisor.
It’s worth noting that if you get a loan to invest in a tax-sheltered account, like an RRSP, TFSA, and/or an RESP, then the interest is not tax deductible.
Consider your options, but be sure to talk to your accountant or tax advisor before making any decisions.