Total Wealth Credit SolutionTM
Borrowing can be strategic
Some affluent investors borrow to invest as part of a comprehensive wealth management strategy. Just as businesses use credit to grow shareholder wealth, the same rationale and benefits may apply to personal wealth, which is why some choose to borrow to invest. They use a customized line of credit to create liquidity against various wealth holdings allowing them to act quickly on investment opportunities.
A Private Banker is a credit strategist with experience in debt structuring and will work with your investment and tax advisors to help you avoid unnecessary trade-offs when raising capital for acquiring new assets, while discussing ways to mitigate the risks associated with borrowing to invest.
The Private Banking advantage
As a Private Banking client, you benefit from our unique Total Wealth Credit Solution™, which gives you uncomplicated access to credit.
Traditional banks are often siloed around financing solutions for different wealth asset classes, making credit complicated and inefficient with multiple loans and relationship managers. Your Private Banker can set up a loan that allows you to borrow against a combination of asset classes, all in one place with a single investment line of credit and, importantly, a single point of contact.
Our process
Your Private Banker combines their knowledge of wealth management, transactional banking and valuation to provide lending guidance customized to your situation and your unique assets.
Our Total Wealth Credit Solution™ allows you to capitalize on investment opportunities in securities, real estate, insurance or other investments. An innovative and flexible borrowing platform, it takes many of your wealth holdings into consideration so you can unlock value in your assets, while avoiding unnecessary trade-offs.
| Wealth asset classes | |||
| Real estate | Investment portfolios | Life insurance policies | Luxury |
Residential Recreational Income property Hobby farm |
Brokerage Investment counsel Direct investing 3rd party managed |
Whole life Universal life |
Aircraft Yacht Art collection |
| Asset valuation | |||
| Appraisal | Market value | Cash Surrender Value (CSV) | Appraisal |
Collateral lending value* % Of asset values based on assessment of volatility and liquidity and client overall cash flow |
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* Loan limit up to combined collateral lending value
Borrowing to invest is not for everyone and suitability is paramount as it can add risk.
Borrowing to invest may not be suitable for all investors. Using borrowed money (whether through a margin account or any other method of borrowing) to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. In the case of a margin account, you are also required to satisfy margin calls as required by the terms of the margin agreement. The use of leverage can result in investment losses which exceed the amount of your invested capital.
This publication has been prepared by The Bank of Nova Scotia and is intended as a general source of information only and should not be considered or relied upon as personal and/or specific financial, tax, pension, legal or investment advice. We are not tax or legal advisors and individuals should consult with their own tax and legal advisors before taking any action based upon the information contained in this publication. Opinions and projections contained in this publication are our own as of the date hereof and are subject to change without notice. While care and attention has been taken to ensure the accuracy and reliability of the material in this publication, neither The Bank of Nova Scotia nor any of its affiliates make any representations or warranties, express or implied, as to the accuracy or completeness of such material and disclaim any liability resulting from any direct or consequential loss arising from any use of this publication or the information contained herein. This publication and all the information, opinions and conclusions contained herein are protected by copyright. This publication may not be reproduced in whole or in part without the prior express consent of The Bank of Nova Scotia.