With the low rates, what do u guys think of locking in 10 years rate at 1.05% and investing proceeds. Our thoughts is along the lines of with the low rates including tax deduction will end up costing us around 0.7% and we think we can beat this. Too risky of a play?
The problem is the same as with Lombard/margin loans: If the collateral (your property, in this case) loses value, it may no longer sufficiently cover the loan. You will then have to close your investments to cover the difference (unless you have cash on hand, but if you did, why would you pay interest on a loan?). If the value of your investments has also gone down by that time, you will be forced to sell at a loss.
But it really comes down to your risk tolerance. You could get really lucky if the value of your investments and/or your property go up. But that would be luck (e.g. gambling).
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Hi @Tebbiko, it’s a considerations many do, and recently of course the stock market returned more than 1.05% and the housing prices (in most cantons) accrued value faster than inflation.
I would also go along the same lines, but as Daniel said, it doesn’t mean it’s going to remain the same 
Another consideration: in case of job loss, etc., can you still afford the morgage with the spouse salary and/or savings.
P.S.: where did you get 1.05%? Last month I got a 10y offer for 1.64% from WIR.
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It’s prefential rate from our employer
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