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Originally Posted by Slava
Well the low rates mean you save less, but it also means you need less of a return to break even. So using this rate, you can invest in almost anything and make money.
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I just did some research. Assuming 3.5% HELOC rate, you need at least BBB rated coporate bonds to make 3.5% from companies like Translata, Fairfax Financial, Brookfield etc. Higher grade investments like T bills or GIC won't get you anywhere close to 3.5% yield.
I can kind of stomach buying bonds from these companies but the problem is all these bonds are selling at a premium right now. Meaning you'll pay 100% tax on the interest but will only get capital loss treatment when the bonds mature.
Many quality div stocks will give you 3.5% yield but you have to bear the risk of the stock prices fluctuation.