Investment Loans

At B2B Bank, we've developed a lending program that makes it easy for you to meet your clients' investment borrowing needs. Working closely with advisors across Canada, we have been offering investment loans for over 20 years. 

See what others have to say.

testimonial from Harry Lee,  Investment Training Manager, Crius Financial Services Corp.

Getting started is easy

Simply enter your client's application through EASE, our online application tool, or visit b2bbank.com/forms and fill out an application form.

Document requirements

To assist the investment loan process, below is a chart that outlines the proof of income and proof of asset document requirements. Select the income or asset type below to ensure you obtain the appropriate documentation from your clients.

Proof of income

Salaried employee

One of the following is required:
  • Recent pay stub (within past 30 days)
  • Most recent T4
  • Most recent Notice of Assessment (NOA)
TIP: You may also be required to provide a letter of employment from your client. Ensure that it is dated within the past 30 days.

Commissioned sales employee

Required to provide:
  • Two most recent years of Notice of Assessment (NOA)
TIP: Ensure that the declared income on the loan application matches the net income on line 150 of the NOA.

Self-employed individuals

Required to provide:
  • Two most recent years of Notice of Assessment (NOA)
TIP: You may also be required to provide one or more of the following documents from your client:
  • The two most recent years of financial statements
  • Confirmation of business ownership
  • Business bank statements

Ensure that the declared income on the loan application matches the net income on line 150 of the NOA.

Retired individuals

Required to provide:
  • The most recent Notice of Assessment (NOA)
TIP: When your client is retired for less than one year, provide both of the following documents:
  • T4A  – Statement of pension and other income
  • T5 – Investment income

Individuals with rental income

Required to provide:
  • The two most recent years of T1 Generals
TIP: You may also be required to provide your client’s lease agreement.

Ineligible income

The following income types and documentation will NOT be accepted:

  • Students and unemployed clients without income
  • Child tax benefits
  • Spousal support
  • Disability income

Proof of assets

Real estate (house, vacation property, rental property)

Provide one of the following for each property:
  • Realty tax assessment (within one year)
  • Municipal property assessment (most recent)
TIP: Your client may also be required to provide one of the following documents:
  • Copy of land registration confirming home ownership and/or no mortgage outstanding
  • Purchase and Sale agreement

Investments

If applicable, provide statement for each investment account (dated within 6 months):
  • RSP statements
  • TFSA statements
  • Non registered funds statements
  • GIC statements

Bank accounts

Provide statements for each account (dated within 30 days):
  • Chequing account
  • Saving account

Ineligible assets

The following asset types will NOT be accepted:

  • Real estate outside of Canada
  • Mobile homes
  • Home furniture/household goods
  • Art work
  • Jewelery and gold
  • Vehicles
  • Pension plans
  • Trucks/boats/snowmobiles
  • Insurance policy
  • Accounts receivable
  • Business value

Ineligible documents

The following documentation types will NOT be accepted:

  • Screenshots from online banking
  • Incomplete investment and bank statements

The Benefits for you and your clients

Feature Benefits
Loan amounts up to $300,0001 You can consolidate all your clients' investments with a single loan provider
Less paperwork for all loans up to and including $100,000 Your clients' loans will be funded quickly
Highly competitive rates Loans with lower borrowing rates have a higher market appeal
Broad fund eligibility A majority of Canadian investment industry assets qualify as eligible collateral for all loan types
Streamlined loan application process Apply quickly online for all your loans, including Distribution Alliance loans, using our Electronic Application Submission Entry (EASE) or on paper, by fax and mail – the choice is yours
Quick status of loan applications When you apply online with EASE, you receive a status of the application within seconds of submitting an application. That means better service for both you and your clients

Our Investment Loan Line-up

We offer four distinct loan types – all of which are competitively priced and available with or without a margin call option.

  • 100% Loan:

    B2B Bank finances 100% of the investment.

  • 3 For 1 Loan:

    B2B Bank lends up to three times the dollar amount pledged (in cash or in kind).

  • 2 For 1 Loan:

    B2B Bank lends up to two times the dollar amount pledged (in cash or in kind).

  • 1 For 1 Loan:

    B2B Bank matches the dollar amount pledged (in cash or in kind).

Loan Programs available

  • B2B Bank Standard Loan Program

    Apply for mutual fund investment loans and RSP loans at B2B Bank standard rates. For investment loans, this program allows for eligible multi-fund investments, with the largest variety of mutual funds, compared to other B2B Bank programs.

  • B2B Bank Select Loan Program

    Available for mutual fund investment loans only. Submit a single application for eligible mutual funds from multiple B2B Bank Distribution Alliances and receive discounted pricing. Offers your client better rates and greater portfolio diversification, compared to other B2B Bank programs.

  • B2B Bank Distribution Alliance Loan Program

    Apply for loans at preferred Distribution Alliance rates. This program is available for mutual and segregated fund investment loans and RSP loans. For investment loans, collateral must remain within the same family of eligible funds offered by one Distribution Alliance.

Loan Program Overview

Loan Details 100% 3 For 1 2 For 1 1 For 1
Loan amount $10,000 - $300,0001
Call type Margin call and no margin call options
Monthly payment Interest Only or Principal & Interest payments
Loan-to-value (LTV) at approval 100% 75% 66.6% 50%
Margin warning (if applicable) 110% 85% 75% 75%
Margin call (if applicable) 120% 95% 85% 85%
Excess collateral release² < 100% < 75% < 66.6% < 50%
Conversion to Principal & Interest payment3 LTV ≥ 125%4 LTV ≥ 100%4 LTV ≥ 100%4 LTV ≥ 100%4
Proof of assets Required for all loans > $100,0005 Required upon request Required upon request Required upon request
Proof of income - Salaried: recent pay stub or Notice of Assessment Required for all loans > $100,0005 Required upon request Required upon request Required upon request
Proof of income - Commissioned: last two years’ Notice of Assessment Required for all loans > $100,0005 Required upon request Required upon request Required upon request
Proof of income - Self-Employed: last two years’ Notice of Assessment and Financial Statements Required for all loans > $100,0005 Required upon request Required upon request Required upon request
Total Debt Service Ratio (TDSR) 40% TDSR will be calculated but will not solely determine credit decision.
Eligible fund collateral6 B2B Bank lends on a majority of available Canadian investment industry assets.
Net worth minimum 1 x loan amt if
≤ $100,000

1.5 x loan amt if > $100,000

2 x loan amt if
> $250,000
Not applicable Not applicable Not applicable
Credit history All obligations must be up-to-date and paid as agreed. No bankruptcies, collections or judgments.
Application submission Online and paper applications are welcome. Applications are typically reviewed within one business day.
Funding Funding typically occurs within one business day upon receipt and verification of original loan documentation.

*The opinions expressed by the authors are their own and do not necessarily reflect the opinions of B2B Bank, its employees, or its affiliates.

1Loan applications for amounts greater than $300,000 are welcome, however, credit qualification criteria, documentation requirements and processing time may vary. 2The LTV ratio of the loan must remain below the values shown after excess collateral is released. A credit bureau may be obtained prior to excess collateral release. 3GMWB funds can only be selected for pledge or purchase if the funds meet B2B Bank's collateral eligibility criteria and a Distribution Alliance agreement is in place with the life insurance company. 4Will occur once the LTV ratio is equal to or greater than 125% for 100% Loans or 100% for 3 For 1, 2 For 1 or 1 For 1 Loans. If after 3 months, the LTV ratios fall below 125% for 100% Loans and 100% for 3 For 1, 2 For 1 and 1 For 1 Loans, the borrower may request in writing to resume the Interest Only payments. 5Documentation for loans ≤ $100,000 may be requested at the discretion of B2B Bank. 6Certain criteria apply, such as funds must be traded electronically, valued at least weekly and in Canadian dollars. Retail Venture Capital, Alternative Strategies and Specialty (including Principal Protected Notes) are not eligible as loan collateral.

While investment loans have the ability to magnify gains, they also have the potential to magnify market losses.  Work with your advisor to understand both the benefits and risks of this strategy.

B2B Bank does not provide investment advice to individuals or advisors and does not endorse or promote any investment products.  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 is sole discretion.  The B2B Bank Investment Loan Program is available exclusively through licensed financial advisors.

This information is intended for financial intermediaries only.