National Life is making it easier for clients to borrow to invest. Through National Life’s Segregated Fund Leveraged Loan Program, clients with non-registered assets can use existing savings to accelerate their investment buying power.

With low interest rates, guarantees on principal deposits, and a variety of loan options and re-payment plans, the program offers convenience, flexibility and a relatively low-risk investment. All loans are fully underwritten by TD Canada Trust.

“This is a favorable time to borrow for investments. Markets have been low for quite some time and there’s a positive outlook that the upswing is near,” said Brenda Moore, director of marketing, retirement and investment products. Moore said the new program is ideal for individual, high net worth investors with non-registered assets.

To invest using the program, clients determine the amount of their initial investment and the amount they would like to borrow. They can then choose one of the following three options.

Using the 2:1 With Margin call, TD Canada Trust will loan up to twice the amount of the initial deposit. The minimum loan is $15,000 and the maximum is $250,000. Margin call applies when the loan to value ratio reaches 85%

With the 1:1 No Margin Option, TD Canada Trust will lend an amount equal to the initial deposit. The minimum loan is $15,000 and the maximum is $100,000. There is no margin call.

With the100% Loan Option, TD Canada Trust will lend 100% of the investment amount; no initial deposit is required. Ontario and B.C. residents must have a minimum income of $60,000 for an individual and $75,000 total for joint borrowers. For all other Provinces and Territories, the minimum income is $50,000 for individuals and $65,000 total for joint borrowers. The maximum loan is 50% of net worth, to a maximum of $150,000. .Margin Call applies when the loan to value ratio reaches 120%

Depending on the amount borrowed, the interest charged is a floating rate between Prime and Prime plus .75%. The added bonus is that the interest can be tax deductible since the proceeds of the loan are being deposited into a non- registered investment.

Clients can also choose from two convenient payment plans, through monthly pre-authorized bank withdrawals.

The Blended payments plan uses a combination of interest and principal, payments are based on an amortization of 30 years, which can be shortened at the client’s request.

With the Interest only plan, payments can change monthly and reflect the interest charged on the loan that month.