Extend Mortgage to Buy Shares in these Times?

[Entrep]

I don't really consider it leverage when it's a 25 year loan (would be paid off early of course) and there is zero chance of liquidation

[Snoopy]

I don't really consider it leverage when it's a 25 year loan (would be paid off early of course) and there is zero chance of liquidation

"A loan is not a loan because it has a 25 year term."

It is amazing what logic can come out when people are very determined to gloss over the consequences of their leverage. There is never zero chance of liquidation. What happens if you or someone in your family got cancer and you needed funds to purchase one of the new drugs not yet funded by Pharmac? What would happen if the value of 'grannies jewellery', or your classic car' collapsed when you had to sell it in an emergency to cover the loan? What would happen if your bank collapsed and all the loans had to be bought out and refinanced by another party?

If you must leverage your share portfolio (big emphasis on that word, not just one or two favourite shares) I would keep that leverage to no more than 10% of the portfolio value.

SNOOPY