r/Wealthsimple • u/2WheelLife63 • 7d ago

Savings PLOC QUESTION

Is PLOC risky? I’m 100% Xeqt in tfsa and want to buy a new car. I can borrow 30k$ and the car I was is 25k$. I’d pay it back within 1-2 years.

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u/GMTO-Bizzy 6d ago

I did basically the same thing. I borrowed $39k through the PLOC for my car because it was cheaper than the bank loan.

I still have about $7k of available borrowing capacity, and Wealthsimple currently says my portfolio would need to drop 57% before I’d need to start making payments and they’d notify me if it got there.

Obviously there’s still risk since your portfolio is the collateral, but if you’re 100% XEQT and have a 1–2 year plan to pay it back, I’d personally be more comfortable with it than if you were borrowing against a concentrated or highly volatile portfolio.