Investment Loans
Borrowing to invest responsibly can help you meet your financial planning goals.
- Are you financially secure with a strong and stable income and comfortable with market volatility?
- Do you already maximize RRSP contributions and other tax-efficient strategies?
- Are you an investor with little-to-no non-deductible debt, such as a car loan or mortgage?
- Do you plan to invest with a long investment horizon?
Canada Life’s investment loan program* enables you to apply, through your advisor, for competitive investment loans from National Bank of Canada. The money is used to set up Canada Life non-registered segregated fund policies**.
You do not have to be wealthy to borrow to invest. Some people successfully use this borrowing strategy to become wealthy. However, it is essential to have the available cash flow to handle regular payments, as well as the ability to handle changing market conditions and interest rates. Cash flow for payments typically does not come from investment income. You need to be prepared to pay the loan from other sources such as employment income or other investments.
There are advantages and disadvantages to borrowing to invest. Anyone considering this strategy should consult their advisor and their tax professional.
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