Hello Reddit community. I recently redid my mortgage and locked in a 5 year 1.7% fixed** mortgage. I’m going to pull out the extra equity and invest the difference.

My first plan is to jump start my newborns RESP by putting around $16,500 into the account with the hope that I can get better returns in 20 years for their education vs just putting in the $2500 a year.

With the rest, I want to run a smith maneuver where I can deduct the interest from my investment loan.

Here’s my question;

In order to deduct the interest from my taxes, do I need to take out a HELOC or can I just pull the equity out in cash? The reason I’m thinking of cash is a lowest interest rate. 1.7 % vs 3.5% on the LOC.

Thanks in advance for your advice everyone.