Free insurance quotes online Ontario-Quebec

Leveraged Loans

If you have maximized your RRSPs and are financially secure, borrowing to invest, or leveraging can be an effective wealth accumulation strategy.

Leveraging is based on the age old premise, "It takes money to make money". A leveraging strategy provides the potential for you to accumulate wealth faster, and can help you diversify and expand your investment portfolio. It also provides an attractive tax benefit since the interest on the loan is generally tax deductible.

Empire's Leveraged Loan Program offers:

Loans from $10,000 to $500,000;

Various loan options:

Borrow up to two times the amount of your investment, eg, $50,000 of your own money and a $100,000 loan;
No Margin Call Options
100% Loan Options

Competitive interest rates;

Fast processing;

No administration or set-up fees;

Choice of repayment options: pay interest only, or interest and principal;

Strong track record with Empire's
Elite Family of Funds;

Maturity and death benefit guarantees;

Flexibility to transfer among funds;

Use your existing Empire portfolio as collateral.

Accumulate wealth with Empire's leveraged loan program

If you have a mortgage, you are already familiar with the concept of leveraging. Leveraging is borrowing money to make a larger investment than you could if you just used your own cash. It can greatly increase the potential returns on your investments, but it can also magnify your losses.

Attractive tax benefit

One of the main attractions of leveraging is the interest on the investment loan is usually tax deductible. This can translate into real tax savings. For instance, if you are in a 50% tax bracket and you borrow $100,000 at 7.5% interest, you could save as much as $3,750 a year in taxes.

The success of a leveraging strategy is dependent on your loan interest being tax deductible as an investment expense. Leveraged loans are only available for non-registered accounts. If you want to take out a loan to contribute to your RRSP, you should consider an RRSP loan.