Suitability of an M1-type product depends on an individual's circumstances and their ability to maintain fiscal discipline. Institutions make their money by betting that atleast some individuals will not wish to terminate the "perpetual loan" (just as the credit issuing companies do).

If you are willing to read and understand all fine print, do extensive research on how you can make such products work for you and of course willing to take some risk (such as variable interest rate) then you could potentially benefit.

What appeals to me is that if at any time you are not satisfied, then you can pay a little money ($100 for M1) to discharge the arrangement.

I am also in the market for a mortgage product and this discussion is a part of my homework and research. I think anyone considering this type of product should (1) check out similar products offered by others (M1, CT, NB), (2) talk to a mortgage professional to find out other options and (3) talk to your financial advisor/tax professional to understand if and how M1 type of product could be made to work for you.

You may also want to learn about leverage investing and Smith Manouvre. Again, these are relatively sophisticated plans but certainly within the realm of possible for someone willing to take time to understand and read fine prints. I am sure someone like Mr. Chopra will be able to enlighten the uninitiated.

Leverage investing so long as it is not tied to your home maybe something to look at.

Leverage investing tied to your home.... not advisable in my opinion at any time.

Depends on how much 'kaleja' you have.

But then there's the saying "no guts no glory".

Again depends on how you interpret it.