Ali (28) and Saira (27) are married with 2 kids and have a manageable mortgage and steady incomes.

They have two long-term financial goals, save for their retirement and leave a sizable inheritance to their kids.

They both make yearly RRSP contributions to reach their retirement goal and Ali contributes $1,778 a month, through a pre-authorized contribution plan (PAC), to a non-registered savings account.


While Ali and Saira are on the right track to reach their retirement goal, they are concerned that the $21,366 a year savings will not generate the inheritance they dream of leaving for their children.

Working with their advisor Laila, Ali and Saira review what they would ideally like to leave for their children, their risk tolerances, cash flow and time horizon.


Based on the financial review, Laila recommends a borrow to invest strategy for the couple, with the same payment amount as the PAC.

By investing a lump sum now, the couple’s investments have the potential to generate greater returns to reach their financial goals.



  • $125,000 investment loan
  • Interest rate of 3.75 % (Prime +0.75%)
  • Principal and interest payments over 20 years
  • Monthly payments of $741.11


  • $175,000 investment loan ($50,000 more than Ali)
  • Interest rate of 3.75% (Prime +0.75%)
  • Principal and interest payments over 20 years
  • Monthly payments of $1,037.55
Graph - Value of Investment After 20 Years


Ali and Saira, with a full awareness of the potential risks of investment lending, move forward with Laila’s recommendation and collectively borrow $300,000.

The total monthly loan payment for the couple is $1,778, which is within their budgeted $2,000 monthly savings amount.

After 20 years, with an assumed annual rate of return of 6%, Ali and Saira would have:

  • Grown their initial investment to a value of $962,140 after 20 years.
  • Paid $126,878 in interest, which may be deductible1.
  • Generated a net gain of $535,262.

This solution will help them meet their goals of leaving a sizeable inheritance and saving for their retirement.

Without the investment loan, Ali's monthly PAC contributions of $1,778 over 20 years with an assumed rate of return of 6%, would only be worth $825,925.

1 Interest is not deductible in all circumstances. Individuals should consult a qualified tax specialist for more information.


Calculations are for illustration purposes only. Actual rates and amounts may differ. Investment Loan Stories, and the figures contained therein, are hypothetical examples and are not intended to project or predict actual results. Please Note: The images of persons featured on this web site are images of models and are used for illustrative purposes only; none of these images are actual clients of B2B Bank.

Investment Loan Calculator

Find out how much money you need to invest today, to achieve your financial goal.
Estimate how much your initial investment will be worth in the future.

Investment Loan Stories

B2B Bank does not provide investment advice to individuals or advisors and does not endorse or promote any investment products. While investment loans have the ability to magnify gains, they also have the potential to magnify market losses. Leveraging involves greater risk than purchasing investments using only your own cash resources because it has the potential to magnify investment losses. The dealer and advisor, not B2B Bank, are responsible for determining the suitability of investments for their clients and for informing them of the risks associated with borrowing to invest. B2B Bank acts solely in the capacity of lender and loan account administrator. Any loan approval from B2B Bank should not be construed as an endorsement of any investment choice, program or strategy. All loans are subject to credit approval and borrowed monies are due and payable regardless of the performance of the investments purchased. B2B Bank reserves the right to request additional information or documentation at its sole discretion. The B2B Bank Investment Loan Program is available exclusively through licensed financial advisors. ®B2B BANK is a registered trademark of B2B Bank.