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Investment Loans

What is an investment loan ?

Clients usually borrow for one of two reasons, either:

  • To buy a big ticket item, like a car, which generally decreases in value over time.

  •  To purchase a big-ticket that has the potential to increase in value over time, like a home or RSP.

  • With an investment loan, clients borrow to make a lump sum investment purchase that has the potential to grow in value over time.

How does an investment loan work?

An investment loan has the potential to outperform a traditional investment strategy in terms of returns for your client. This is why:

  • Compound returns and a larger initial upfront investment accelerate savings.

  • Compound returns on an investment are calculated not only on the initial investment, but also on the accumulated growth from year to year.

In general, interest paid on borrowed funds to generate investment income is tax deductible. When interest is deducted, it can be a powerful tool for lowering the overall cost of an investment lending strategy. In some cases, interest is not deductible.

The benefits of investment loan.

Accelerate the achievement of goals

Investment gains have the potential to accelerate the achievement of financial objectives.

Create tax deduction opportunities

The investment is immediately accumulated

Rather than waiting to build your savings with a traditional strategy, a lump sum investment begins compounding immediately.

Tax deductions may provide opportunities to reduce the overall cost of an investment lending strategy.

Statistic calculating
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