Main benefits of an investment loan
- Allows you to take advantage of market upturns
- Maximizes your investments while maintaining access to your liquidity
- Helps diversify your investment portfolio
- Can allow you to leverage interest expense deductibility
- Offers increased investment capacity and may provide access to reduced fees through Prestige preferential pricing
- Provides access to segregated fund benefits
Investment loan interest rates
The rates shown are determined based on the Royal Bank of Canada’s prime rate (PR), which is currently at 7.20%. Interest rates are provided for information purposes only and are subject to change at any time without notice.
Investment loan interest rates (non-registered assets)
|Loan amount||100% loan Interest rate||1:1 loan Interest rate|
|$10,000 to $49,999||PR + 1.25%||PR + 0.75%|
|$50,000 to $99,999||PR + 1.00%||PR + 0.75%|
|$100,000 to $300,000||PR + 0.75%||PR + 0.75%|
A few criteria are taken into account to verify eligibility for an investment loan.
- Stable income of over $65,000 per year
- Subject to credit approval
- Solid investment knowledge
- “Moderate” to “high” risk tolerance, depending on investor profile
Repayments are made by pre-authorized debit (PAD) on a monthly basis.
You have two options:
- Repayment of interest only: PAD payments vary based on the interest rate in effect and correspond to the interest accrued on the loan for the previous month.
- Repayment of principal and interest: PAD payments include repayment of both the principal and interest. They vary based on the interest rate in effect and the amortization period chosen (5 to 20 years).