What if the investment performance is poor?
There is historical evidence(1) to indicate that markets can produce a conservative average annual rate of return to be 6% to 8% over a 15-25 year mortgage amortization period. Statistical data has also shown that a market can maintain a positive return 19 times out of 20 over a 5 year period(2). The Deduct My Mortgage strategy involves the systematic exchanging of non-deductible debt into deductible debt. This strategy can fall to a 3% annual average rate of return over the duration of the mortgage period and still be successful(3).
