Portfolio Line of Credit ($25,595 Portfolio)

I started my Portfolio Line of Credit borrowing to invest through Wealthsimple on July 27, 2026. It would be with the intention of gradually borrowing more up to a maximum of $100K, to invest for at least 8-10 years unless something materially different happens which justifies ending the account earlier.

So far, I have borrowed $25K and everything is invested in $XEQT. The borrowing rate is prime minus 0.50%, which is equal to 3.95% at the time of this post. My first interest charges deducted for borrowing from PLOC was $8.66 which is just added to my PLOC balance. *** Updated: I will pay back ths interest monthly. (Thanks everyone who commented and shared your feedback on this topic 🙏🏻)

Please note this PLOC borrowing to invest is separate from my Smith Manoeuvre portfolio. Also note borrowing to invest can be risky so please do your own dilligence and assess your own risk tolerance before implementing something similar.

Anyone else who has a Portfolio Line lf Credit? What do you tend to invest in?

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78 Comments

Green Gambit@defive · 5h

I also borrowed $5,000 from my PLOC, but I made the mistake of investing it in DRAM. I'm currently down 25%, so I don't really have a choice but to hold it and sell once it recovers. I should have invested it in XEQT instead.

Jessica @hajessica · 2h

I would double check that interest on interest is tax deductible. From my understanding, it is not so I pay interest only every month

Jon Snow

@jsnow10 · 4h

I am also planning to use margin or PLOC on WealthSimple but I will only start when market is at least 5-7% down from the highs as it will give me additional cushion.

I will invest in more growth ETFs like $VFV and $HXQ to get most out of my leverage.

@moementumfinance don’t you think you will get hit with big interest bomb at the end if you don’t pay it on regular bases. It’s like you’re compounding interest. Although in exchange you get to invest more and get more tax refund. What’s your thought process on this?

Mr Financial

@mr.financial · 3h

No personal or portfolio line of credit for me. My personal circumstances are very different from yours, with still 10 years to invest. I'm approaching the consumption stage.

I appreciate how you are laying out your use of the SM and Portfolio LOC. It's very modest leverage considering your portfolio size. And it's smart that you are using global market indexing with the funds. It's not a bet, hoping to hit a homerun. It's a measured strategy to use future expected returns to your advantage.

Love what you're doing buddy 👊

Heath

@incomewealthinvestor · 4h

Moe, you didn’t mention anything about re-investing your dividends.
Do you have DRIP turned on to purchase additions shares?

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