What is investment loan？
A finance leverage with low interest rate only available for Canadian. Through wisely investing strategy, you can achieve financial freedom quicker than you think.
How does investment loan work?
Benefits of Investment Loan
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No collateral
No physical assets are given as collateral, and only credit scores are measured. -
Low interest
P+0.75%, lower than that of housing mortgage under the same circumstances. -
Only the interest is required to be paid
Pay monthly interest only, with little pressure. -
No margin call
The bank has no margin call when the market fluctuates and falls. -
Tax deduction
A tax deduction can be realized with the interest paid.
With investment loan, you can……
1. Fast forward your savings
With a traditional savings plan, only the investment you make in the first year will have the full 20 years to grow. Each subsequent year, the amount you contribute will have less time to grow.
If you have $3,950 to invest each year for 20 years, with the 16.63% rate of return, after 20 years, your investment would be worth $573,085.
However, if you made an interest-only annual payment of $3,950 toward a $100,000 investment loan, the entire loan amount could benefit for the full 20 years, with your investment worth $2,068,730 (after repaying the $100,000 loan), which is $1,495,645 more than the traditional savings plan.
2. Investment lending
A financial strategy that can for the right investor, help achieve your financial planning goals sooner by making a larger initial investment.
A way for investors to potentially grow their investment portfolio faster than traditional saving alone.
Investment loans can be a suitable tool to help with longer-term savings goals or to supplement RSP and government pensions in retirement.
3. Maximize your wealth
Generally speaking, interest paid to borrow money to earn investment income is tax-deductible. For example, if you borrowed $200,000 at 3.95% to invest, your annual interest expense would be approximately $7,900. All else being equal, taking the $7,900 deduction would yield a potential tax savings of $2,834.
From the above data, it can be seen that the interest paid each month is much lower than the nominal interest rate after tax deduction.
For high-income groups, the actual interest payment can even be halved.
Any Questions?
What is the interest rate?
The interest rate is P+0.75%, which is 3.95% right now.
How much should I pay every month?
You pay interest only. For example, if you borrow $100,000, you only need to pay $330 per month.
How much should I borrow?
It depends on personal financial situation, such as your assets, income and liabilities.
Can I view my account online?
Yes, you can view your investment account (the account where your loan proceeds are invested) online under our admin's instruction.
Invest NOW
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