An investment loan is an effective tool to increase your investments’ growth potential through use of a leveraging strategy. Your can thus reduce your taxable income with tax-deductible loan interest.
This type of loan is particularly useful for clients who have a portfolio of non-registered assets and who are long-term investors (10-year minimum).
Why take out a loan for your non-registered savings plan?
- You increase your investment capacity.
- You maximize potential returns on investment.
- You maintain your liquidity for other projects while increasing your investment value.
The advantages of taking out an investment loan with us
- Competitive interest rates.
- You can choose to pay back capital plus interest or interest only.
- When possible, you can choose to just pay the interest (principal at maturity).
- Choice of two borrowing options: a 100% loan (without down payment) or a one-for-one loan (with a down payment equal or superior to the loan amount).
The rates shown are fixed in accordance with the Royal Bank of Canada’s prime rate (PR), which is currently at 3.95 %.
Investment loan interest rates (non-registered assets)
|Loan amount||100% loan||One-for-one loan|
|$10,000 to $50,000||PR + 1.75%||PR + 0.75%|
|$50,001 to $100,000||PR + 1.50%||PR + 0.75%|
|$100,001 to $250,000||PR + 1.25%||PR + 0.75%|
|$250,001 to $500,000||N/A||N/A|