• Two payment options
• Loan amounts
• Eligible Funds
• Eligibility
• Requirements
• Interest rates
• Repayment
• Prepayment
• Margin calls
• Systematic withdrawals
• Statements
   

Two payment options

1. Monthly principal and interest payments based on a long amortization period (maximum 20 years)   
    
2. Monthly interest payments only
    

Clients who take out a Wealth Builder Investment Loan do not have to pledge additional security. 

Loan amounts

Minimum: $10,000
Maximum: $250,000

Eligible funds

All Desjardins Financial Security (DFS) Guaranteed Investment Funds available through the Helios Contract.

Eligibility

Clients applying for a Wealth Builder loan must complete all M.R.S. Investment Loan documentation AND submit proof of income.

No proof of income is required for loans up to and including $50,000. However, the borrower’s annual earnings must be indicated on the application. 

Requirements

MRS Trust’s loan approval process is based on a collective assessment of the following factors: credit quality, net worth, ability to repay and leverage.  

Generally, an individual having:
 

• a good credit (a Beacon Score of 675+)
• a net worth at least equal to the loan amount
• a total debt service ratio not exceeding 35%
• total leverage (total debt divided by total verifiable assets) of under 65% 
   

will qualify for either a MRS Wealth Builder Investment Loan or MRS 2 for 1 Investment Loan.  Verifiable net worth will include real estate, RRSPs and other investments, and typically does not include assets such as cars, boats, jewellery, works of art, etc. 

Interest rates [1]

Interest rates on the Wealth Builder Investment Loans offered in collaboration with MRS Trust are floating and based on a tiered formula.

For the Wealth Builder Investment Loan with principal and interest payments, the spread above prime is based on the original loan amount and is fixed for the duration of the loan.

For the Wealth Builder Investment Loan with interest only payments, the spread above prime is based upon the outstanding balance. Consequently it could change with variation in the loan balance.

For both payment options, the interest rate will vary with changes in the MRS Trust prime rate. 

Repayment

1. Principal and interest payments: Your client must repay part of the borrowed principal and interest each month. He/she can amortize the loan over a maximum of 20 years or make larger payments to reduce the loan amortization period. Payments are debited from your client's account on the 20th of each month. Please include a VOID cheque with the loan application.
    
2. Interest only payments: Your client must repay the interest each month. Payments are debited from your client's account on the 20th of each month. Please include a VOID cheque with the loan application.

Prepayment

The loan may be pre-paid at any time without penalty.

Margin calls

There is not a margin call on the Wealth Builder Investment Loan.

Systematic withdrawals

Systematic withdrawals are not permitted with the Wealth Builder Investment Loan.

Statements

Clients who have chosen a Wealth Builder Investment Loan receive a DFS semi-annual statement, which details their account and investment transactions, units attributed and their market value.

Your clients will also receive an MRS Trust annual statement showing the cost of their loan, which they can use for tax purposes.