[FrugalTrader]

My wife has no income so why can't I just give the required funds to buy investments ?

Why is it necessary to go through a loan ?

After all I paid taxes on the income so it is up to me what I do with it.

Zen,

There are attribution rules in Canada to prevent exactly what you are trying to do (http://www.investopedia.com/terms/a/attributionrules.asp). Basically, you are trying to use your money to invest under your wifes name to reduce taxation on the investments. If you simply give money to your wife to invest, any investment income will be taxed in your hands, not hers (http://www.professionalreferrals.ca/2003/10/family-income-splitting/)