I have this aunt who lives in the US. When she bought an investment property, a condominium in the Philippines, what she did was she staggered the payments as much as she can so she could get the monthly payments lowest to about P15,000 per month. The cash that she could've used to pay more for the property, 1 million pesos, was instead put in a deposit account earning 3% interest per annum. The interest from this was used to help pay for the monthly mortgage payments. I'm just not sure if it is absolutely worth it. But the method might work if you hold bonds that earn a high amount of interest. Instead of liquidating these high paying bonds to pay for the property, why not use the interest to help you pay off the monthly mortgage payments?
Update: My aunt confirmed she was earning 3% PER MONTH (not per annum), that's a whopping 36% per year!!! She put in 1 million pesos instead of putting it in the condo equity, so she now earns P3000 per month or P36,000 per year.. The average return of the stock market is at 42% per year.. That's not a bad deal for a loan/investment at all.
Turns out she invested the 1 million in a construction company, a corporate bond sort of scheme. The construction company was better off with my aunt's 3% a month than a bank who charges 9% per month. Now I believe truly good deals exist!!!
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