Product Synopsis
Borrowing to invest ("leverage") can be an excellent wealth-creation strategy when implemented properly with the right clients. Leverage has several benefits, including interest expense that may be deductible for income tax purposes.
Two investment loan products are available to your clients:
The Wealth Builder Investment Loan
- No margin call loan, suited to clients who prefer not to pledge non-registered mutual or segregated funds.
The 2 for 1 Investment Loan
- No margin call or margin call loan, suited to clients wishing to borrow to invest using varying levels of leverage.
- Clients can borrow up to twice the amount they pledge in cash or existing non-registered mutual or segregated funds, to purchase additional eligible funds.
With either loan your clients can choose from:
- An account at Mackenzie or MRS
- Mutual funds or segregated funds (for Mackenzie only)
- Interest only or principal and interest payments
All loans are single advance demand loans.
Note: It is recommended that your clients consult a tax specialist for guidance on deducting interest expense for income tax purposes.
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