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Products > Banking > Loans > Investment loans

Investment Loans: Introduction

Investment leverage is a powerful tool that can accelerate the growth of your client’s non-registered savings and help them achieve their financial goals sooner. As with any financial strategy, the key to success is finding the product that best meets your client’s needs. Our industry-leading lineup of investment loan products is designed to meet the needs of all of your leverage clients – from those trying leverage for the first time to more seasoned investors.

100% Loans

Ideal for investors new to a leveraged investing strategy and for those wishing to borrow 100% of their investment amount, 100% Loans have the following features:

  • Loans of $10,000 to $300,000, so your clients can start a leverage program with the loan size that’s right for them.
  • No margin calls due to market fluctuations. Your clients never have to worry about being asked to make additional deposits if their investments fall in value, however clients maybe requested to convert from Interest Only to Principal and Interest payments when loan to value exceeds 125%
  • 100% financing. We'll loan them the full amount of their non-registered investment so they don’t need to access their cash or other assets as an initial deposit.
  • Abbreviated underwriting for loans $100,000 and less.
  • Choice of Interest Only or Principal and Interest (10 to 20 years) payments and clients are always free to pay off their loan at any time with no penalty.
  • Attractive floating interest rate.
  • No application fee.
  • Streamlined application process.

Multiplier Loans

Designed for sophisticated investors who wish to borrow larger amounts, Multiplier Loans allow you to tailor the loan to the needs of each specific client. Here are just some of the features:

  • Personal loans of $10,000 to $1,000,000 allow you to provide larger leverage loans to meet your clients' needs. For loans greater than $1,000,000 please contact your Business Development Consultant at 1-800-567-9170.
  • 3:1 leverage.
  • Choice of Interest Only, or Principal and Interest (10 to 20 years) payments and clients are always free to pay off the loan at any time with no penalty.
  • No margin calls due to market fluctuations. Your clients will never be asked to make an additional deposit if the value of their investment declines, however clients may be requested to convert from Interest Only to Principal and Interest payments when loan to value exceeds 125%
  • Attractive floating interest rate.
  • Alternative equity. Manulife Bank will accept other eligible investments as client equity, including Manulife Mutual Funds, Segregated Funds, GICs and eligible permanent life insurance policies.

Use our investment loan illustration tool to help determine if the concept of borrowing to invest is right for your client.

Borrowing to invest may be appropriate only for investors with higher risk tolerance. Your clients should be fully aware of the risks and benefits associated with investment loans since losses as well as gains may be magnified. Preferred candidates are those willing to invest for the long term and who are not averse to increased risk. The value of your client's investment will vary and is not guaranteed, however they must meet their loan and income tax obligations and repay their loan in full. Please ensure clients read the terms of their loan agreement and the investment details for important information. Manulife Bank of Canada solely acts in the capacity of lender and loan administrator and does not provide investment advice of any nature to individuals or advisors. The dealer and advisor are responsible for determining the appropriateness of investments for their clients and informing them of the risks associated with borrowing to invest.

 

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