Jump to content
Find Professionals    Deals    Get Quotations   Portfolios
Sign in to follow this  

Interest rate calculation

Recommended Posts


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!


Share this post

Link to post
Share on other sites
Looking for good contractors? Click here for your request

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this