What is it?
Solutions BankingTM borrowing options include loans and lines of credit that can help you take advantage of an investment opportunity, renovate your home or cottage, buy a new car or boat, or handle an emergency expense.
Overall, it’s about providing you with several lending options, all of which are designed to help you reach your personal financial goals.
How does it work?
Borrowing allows you to finance projects or purchases today that could otherwise take years to save for, such as renovating a home. With an effective debt management strategy integrated into your financial security plan, borrowing can help you achieve your financial goals.
Your financial security advisor and investment representative can help you find ways to use debt more effectively and adopt strategies to help you pay down debt faster.
How will it benefit me?
Secured Personal Flex Line
This line of credit is like having a pre-approved loan at your fingertips, with all the access privileges of a chequing account. That means you can access funds whenever you need them to help pay for unplanned expenses, to consolidate loans or to finance a large purchase.
Secured by your Great-West Life segregated fund policy or Quadrus Group of Funds mutual fund investment, the Personal Flex Line gives you access to financing without having to redeem your investment.
Investment line of credit1
Borrowing to invest (also called leveraging) can sometimes be a useful strategy to help grow your non-registered investment portfolio and build your wealth, but there are potential risks involved where losses are magnified making this strategy not suitable for everyone.
The investment line of credit allows you to borrow money to invest a larger sum of money at one time, rather than making smaller contributions over a longer period. It may also reduce personal income taxes because the interest paid on a loan may be tax deductible when used to generate income.2
Secured personal loan
If you know the amount you want to borrow, a Solutions Banking loan might be a good option to help you meet your goals. A secured personal loan is ideal for one-time expenditures. It may be a good choice if you want to finance a large purchase or consolidate other loans into one low interest rate.
Registered retirement savings plan (RRSP) loan1
An RRSP loan allows you to take advantage of unused RRSP contribution room and may reduce your personal income taxes.
Investment term loan1
An investment term loan allows you to invest a larger sum of money at one time, rather than making small contributions over a longer period. It may also reduce personal income taxes, because the interest paid on a loan may be tax deductible when used exclusively to generate income.2
There are potential risks involved where losses are magnified when borrowing to invest for either a registered retirement savings plan or an investment term loan, making this strategy not suitable for everyone.
1 While borrowing to invest has potential benefits (investing an initial lump sum creates greater potential for compound-growth compared to making smaller regular investment purchases), it also has potential risks and can magnify (market volatility may result in poor investment returns and the possibility of owing more on the loan than the investments are worth).
2 At this time, Canada Revenue Agency (CRA) indicates that investments such as mutual fund trusts, corporations and segregated fund policies are eligible investments for interest deductibility purposes. Canada Revenue Agency can change its position at any time, so interest deductibility cannot be guaranteed. For Quebec income tax purposes, investment expenses (which include interest on loans that were used to purchase non-registered investments) are only deductible up to the actual amount of taxable investment income earned during a particular year. Investment expenses in excess of the taxable investment income in a year may be carried back three years or carried forward indefinitely to offset taxable investment income.
Some fees may apply. For full fee disclosure, refer to the Solutions Banking Product and Service Guide to Fees.
Quadrus Group of Funds is exclusively offered through Quadrus Investment Services Ltd. Important information about mutual funds is found in the Fund Facts. You can obtain a copy of this from your investment representative. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Unit values and investment returns will fluctuate.
Solutions BankingTM is a trademark of Power Financial Corporation. Great-West Life and the key design are trademarks of The Great-West Life Assurance Company. National Bank of Canada is a licensed user of these trademarks. Solutions Banking products and services are provided by National Bank of Canada.
Talk to an expert
Not feeling confident in your finances? You can talk to one of our financial security advisors who will work with you to craft a financial plan tailored to your needs.