NON REGISTERED BORROWING

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NON REGISTERED BORROWING

 
Paying Out Existing Investment Loans
Another valuable feature available on Mackenzie Investment Loans is the ability to pay out loans at other lending institutions. In an effort to make this transaction flow as smooth as possible for you, the following explains the required procedure.

First, A Bit of Background
With our Investment Loans, mutual funds or segregated funds are typically purchased with loan proceeds. That being said, here is an example of two $50,000 loans:

     
  2 for 1 Wealth Builder
Loan Balance $50,000 $50,000
Total Mutual Funds $75,000 $50,000
Loan Balance ÷ Mutual Funds (LVR) 67% 100%

Requirements
To create a loan where the funds will be advanced to pay out a loan at another lender, we need to emulate one of the scenarios in the chart above. If the loan is going to be a 2 for 1 then you must have eligible mutual fund/segregated fund security that is at least 50% greater than the amount of the moneys owed to the other lender. For example, assume you owe $50,000 to the bank/trust company/credit union then you would require $75,000 in Mackenzie investments as security for the 2 for 1.

Once we have received all of the documentation in good order we can fund the loan to pay out your existing indebtedness.We then follow up with the existing lender to obtain their releases of interest in the Mackenzie mutual fund/segregated fund security and once these releases are obtained and forwarded to Mackenzie, normal trading may resume.