Credit Card Arbitrage for a Canadian

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I recently bought a condo and put down a sizeable amount of downpayment on the place. Then I was reading some Canadian Financial blogs and came across Frugal Trader's article about credit card arbitrage. While I agree with his assessment that taking a 10K and putting it into a high savings account is likely not worth the pain for the gain. I realized that i am in a slightly different situation and that if I borrowed the 10K (actually 12.5K in my case) to pay down against my mortgage (Aside: my mortgage lender will let me pre-pay up to 10% of my outstanding principle) I could get the money to work seriously well for me. I won't disclose my exact lending rate but basically if I can pay off 12.5K of my mortgage instantly and if I am diligent with saving 12.5K in 1 years time (not to hard to do), I will have an amazing after tax return.

What do you think of this idea?

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