A tax deductible loan, in essence, reduces the actual interest rate you pay. If you only pay 1-2% on a loan, that's fine. Better to make 6-8-10% on your money, than using it as a downpayment for a mortgage which you could finance at 1-2%.
If cost of debt < return on investments -> then invest it, don't use it for your downpayment.
Obviously, this does not apply to credit card debt, on which you pay 10-15% interest per annum.
If cost of debt < return on investments -> then invest it, don't use it for your downpayment.
Obviously, this does not apply to credit card debt, on which you pay 10-15% interest per annum.