Money when you need it, for as long as you need it


With traditional investing, you invest your own money. With leveraged investing, you invest borrowed money – and that means you can invest a much larger amount. Because you’re investing more money, you earn more when markets rise and lose more when markets drop*. If you can accept that higher level of risk, leveraged investing can be an effective way to create wealth faster.

Our investment loans let you:

  • Borrow the entire amount you want to invest with a 100% loan
  • Borrow up to 3x what you contribute with a 3:1 multiplier loan
  • Get a potential tax deduction for the interest you pay2

4.95%
Investment Loans rate1

Are our investment loans right for you?

Yes, if you:

  • Plan to invest for at least 10 years 
  • Have enough income to make your loan and tax payments 
  • Have a high risk tolerance and feel comfortable with an approach that magnifies gains or losses
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Benefits of an investment loan

Rates & fees

Our investment loans offer a competitive interest rate on the money you borrow.

Fees

Fee for non-sufficient funds (NSF) processing $45.00
Fee for withdrawals
(after two free withdrawals per calendar year, subject to approval)
$100.00

Resources

Interest-only investment loan calculator

Learn what your payments would be on an interest-only investment loan.

Principal and interest investment loan calculator

Understand your repayment schedule for a principal and interest investment loan.

FAQ

Investment leverage simply means borrowing money to buy investments. When you borrow to invest, you magnify your investment returns because you are investing a larger amount of money. That works for you if your investments are increasing in value and your investment returns are positive – but it works against you if your investments are decreasing in value and your investment returns are negative. Gains and losses are magnified with investment leverage. That’s why investment leverage is only appropriate if you have a higher risk tolerance and are investing for the long term. Also keep in mind that no matter what happens in the markets, with investment leverage you still have to meet your loan and tax obligations. 

That depends on your individual situation and we strongly recommend you discuss it with your advisor. Our investment loan calculators can help you explore different loan amounts and interest rates so you and your advisor can make a more informed decision. With the interest-only investment loan calculator, you can set two of three variables – the monthly payment, principal loan amount, or interest rate – and see the impact on the third. With the principal and interest investment loan calculator, you can set the term, principal loan amount and interest rate and see a complete schedule of monthly payments until the loan is paid off. 

Let’s say two people, Liz and Mike, are both saving for a dream vacation in 10 years. Liz saves up and contributes a lump sum at the end of each year to her non-registered account. Mike borrows $100,000 from Manulife Bank to invest right away. During the next 10 years, Liz contributes $28,991 and pays $555 in tax for a total cost of $29,467. Mike makes interest-only payments of $28,991 and pays $555 in tax for the same total cost. Both investors earn a 5% return on their investments. After 10 years, they sell their investments, pay their taxes and Mike pays off his loan. Liz has $35,066 to spend on her vacation. Mike has $52,277 – over $17,000 more.

This example assumes that Liz makes end-of-year contributions equivalent to Mike’s net cost of borrowing. Mike’s investment loan interest rate is 4.5% and his interest payments are 100% tax-deductible. For both Liz and Mike, the annual taxable portion of their fund return is 20%, the tax rate on income allocations from funds is 30%, and the marginal tax rate is 45%. All assumptions are for illustration purposes only. Results will vary slightly for Quebec residents.

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Build your retirement savings with an RRSP loan

Make a bigger RRSP contribution and get more money growing tax-deferred towards your retirement goals. You can defer your first loan payment for 120 days (interest continues to accrue during this period), which can give you time to receive a potential tax refund or save other money to help pay off the loan.

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Get spending flexibility with a line of credit

Get access to cash at a competitive interest rate whenever you need it. You can use your line of credit to pay for a big purchase, consolidate your debt or serve as an emergency fund.

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Simplify your banking with Manulife One

Combine your deposits and borrowing into a single account so that every dollar you earn automatically goes towards paying down your debt. You could save thousands in interest and be debt-free years sooner.