Investment Lending Services

100% Margined Demand Loans

100% Margined Demand Loans¹ are designed for investors who are comfortable with a potential margin call, can meet the income requirements and wish to choose individual funds for investment without providing a down payment. Your clients can borrow up to $250,0000 to invest in Mutual Fund Portfolio Funds or Segregated Fund Portfolio Funds, or choose individual Mutual or Segregated funds to diversify, so that there is no more than 35% of the total invested in any one fund.

Maximum loan:		$250,000 Maximum 50% of tangible net worth
Eligible Funds:	Mutual Fund Portfolio Funds or maximum 35% invested in any one fund from: 3rd Party Mutual Funds (See approved list) TD Mutual Funds AEGON Mutual Funds Segregated Fund Portfolio Funds or maximum 35% invested in any one fund from: Empire Life Canada TD Guaranteed Investment Funds II Transamerica Life Canada
Payment Options:	Blended principal and interest with maximum 20-year amortization
Deposit requirements:	None
Income requirements:	Ontario and BC $60K individually ($75K joint) Rest of Canada $50K individually ($65K joint) Maximum 35% Total Debt Service Ratio

Margin Requirements

• The loan to value ratio at the time the funds are advanced will be 100%
• A Margin Warning may be issued when the loan to value ratio reaches 110%
• A Margin Call may be made when the loan to value ratio exceeds 120%

For example:

Loan $100,000		Portfolio		LTVR
		$100,000	100%
Margin Warning		$90,900	110%
Margin Call		$83,000	120%

For advisor use only.

¹ Loans are repayable on demand. Loans may be demanded even if there is no default under the Loan Agreement and even if all margin requirements have been met.