Hi, 

Someone told me that I should take a higher mortgage loan on my property at interest rate of 1.3% p.a., cos I can use my excess cash to invest and anything I invest higher than 1.3%, eg 1.4%, I would have earned using the money the bank “lent” me on the mortgage loan.

Is this calculation right? If the mortgage loan is at 1.3% p.a, is that the effective rate? How to calculate effective rate? Thanks!

There are online calculators that select the best profitable option for you. Use it.

The numbers look pretty realistic, but you could still use the help of a specialist in this field. I would recommend you Mortgage Advisor Cardiff because this is exactly the place where you can be sure and call it reliable. The professionals from this company helped me calculate all the necessary numbers and interest, so now I have no problems with my loan, which was a real pain in the *** for me last year, if you know what I'm talking about. I am sure that they will help you, too, because you can definitely rely on them.

Edited January 24, 20215 yr by Sonilor