Mackenzie | Repayment + Margins

NON REGISTERED BORROWING

Repayment

A minimum monthly payment of interest is required for the 2 for 1. You may also choose to amortize the loan with a principal and interest payment if desired.

Payments on both loan types are to be made by pre-authorized chequing and are debited to your client's own personal chequing account on the 20th of each month.

The Wealth Builder Investment Loan requires a blended payment of principal and interest that would amortize the loan over a maximum of 20 years, or you may choose a payment that retires the debt in a shorter time period should you desire. There is also an option to choose interest only payments for qualified borrowers.

Margins

Mutual Fund Loans
The Loan to Value Ratio (LVR) is allowed to float up to 85% for the 2 for 1. This is the Margin Call points for each. The LVR is calculated by dividing the balance of the loan by the eligible investments contained in the pledged Mackenzie investment account/contract. Should a Margin Call occur, you will be contacted requesting that the account be lowered to an LVR of no greater than 75%. This can be accomplished by you either paying down the loan, by pledging more eligible Mackenzie investments, or a combination of the two.

There is no margin call with a Wealth Builder Loan.

Mutual funds sponsored by Mackenzie Financial Corporation are only qualified for sale in the provinces and territories of Canada. Please read a fund’s prospectus and speak to an advisor before investing.