An investment loan is an effective tool to increase your investments’ growth potential through use of a leveraging strategy. Your can thus reduce your taxable income with tax-deductible loan interest.
This type of loan is particularly useful for clients who have a portfolio of non-registered assets and who are long-term investors (10-year minimum).
With an investment loan, clients borrow to make a lump sum investment purchase that has the potential to grow in value over time.
An investment loan has the potential to generate greater returns for your client than a traditional investment strategy. Here’s why:
Accelerates savings through a larger initial upfront investment and compound returns.
Compound returns on an investment means that returns are calculated not only on the initial investment, but also on the accumulated growth from year-to-year.
Generally speaking, interest paid to borrow money to earn investment income is tax deductible. When the interest is deducted, it can be an effective way of reducing the overall cost of an investment lending strategy. Interest is not deductible in all circumstances.
You increase your investment capacity.
You maximize potential returns on investment.
You maintain your liquidity for other projects while increasing your investment value.
Competitive interest rates.
Loan amounts available from €50,000 to €2,500,000.