We believe that investment lending, with the guidance of your financial advisor, has the power to help you achieve your financial goals.
With an investment loan, you are borrowing to make a lump sum investment purchase that has the potential to grow in value over time.
To determine if an investment loan is right for you, speak with your advisor.
With a traditional investment strategy you set aside a portion of your income to make regular contributions and your investment savings slowly build over time. With an investment loan you borrow a lump sum of money up front and set aside a monthly portion of your income to meet the loan requirements.
In consultation with your advisor, an investment loan has the potential to generate greater returns than a traditional investment strategy. Here’s why:
Interest is not deductible in all circumstances. For example, if the only earnings your investment can produce are capital gains, you cannot claim the interest you paid. Additional restrictions apply for residents of Quebec. Please consult with a tax specialist for information on deducting interest.
Leveraging involves greater risk than purchasing investments using only your own cash resources because it has the potential to magnify investment losses.
Your advisor will help you determine what type of investment loan may be right for you.
Depending on what you and your advisor determine is right for you; there are several loan types available with a range of features.
Loan types are usually determined by whether or not you want to put up any of your own money – and if so, how much.
Investment loans have two margin call options to consider.
Investment loans have two payment options.
|100%||3 For 1||2 For 1||1 For 1|
|How they work||Borrow 100% of the investment with no money down.||Borrow up to three times the amount you pledged.||Borrow up to two times the amount you pledged.||Loan amount matches one for one the amount you pledged.|
|Margin call options||All loans are available with a margin call or no margin call option.|
|Payment options||All loans come with an interest only or principal plus interest monthly payment option.|
Only your advisor can help you determine if an investment loan is right for you. In general, investors who may benefit from
this strategy will have:
|What are the benefits?||What are the risks?|
Work with your advisor to understand both the benefits and risks of a borrowing to invest strategy.
To achieve your financial goal of $1,000,000.00 in 25 years, based on an estimated return rate of 10.00%, you would need to make an investment of $92,296.00.
The calculations shown are for illustration purposes only. Actual rates and amounts may differ.
B2B Bank cannot be held responsible for the accuracy of the calculation performed or the amounts indicated.
For over 20 years, B2B Bank has been working with advisors to offer investment loans to Canadians.
Want to learn more about borrowing to invest? Watch our video about how investment loans can help you build wealth and make your financial goals a reality.
With their mortgage paid off, Gary and Eva work with their advisor on how to accelerate their savings.
High income earners, Marianne and Carlos, work closely with their advisor to increase their investment savings.
For Ali and Saira, leaving a sizable inheritance for their children is a financial priority.
Ian decided to borrow to invest instead of borrowing to spend, so he could retire earlier.
B2B Bank is proudly 100% Canadian, and we have an independent spirit – much like the advisors we work with.
We’re dedicated to you and your advisor because we strongly believe that all Canadians should have access to independent financial advice.
We believe in investment lending and the power it has to help build wealth and achieve your financial goals. As a responsible lender, we acknowledge that investment lending is not for everyone.
One of the main reasons why your advisor has chosen to work with us is because we value the relationship that they have with you.
We give Canadians a choice. Where other banks have their own advisors, we serve independent advisors who are able to offer you unbiased advice and financial solutions that are appropriate for your individual needs.
We believe in the power of independent financial advice and the benefits of working with an advisor. That’s why we’ve based our business model on supporting the needs of financial professionals and one of the reasons why you may not know our name. We are ‘behind-the-scenes’ intentionally because we encourage and respect the advisor-client relationship.
Headquartered in Toronto with regional representation from coast to coast, B2B Bank is a Schedule I Canadian bank that serves a network of some 27,000 financial professionals, including financial advisors and representatives, mortgage brokers and insurance agents.
Over the years and through all the changes, B2B Bank has always remained fiercely dedicated to helping financial professionals fulfill their clients’ financial needs through a suite of high quality, integrated financial services and solutions.