Types of B2B Bank loans and lines of credit 

• Investment loans. Investment loans provide financing for buying mutual or segregated funds. The available financing options are 100% (the bank finances 100% of the investment), 3 For 1 (the bank finances up to 3 times the dollar amount pledged), 2 For 1 (the bank finances up to 2 times the dollar amount pledged), and 1 For 1 (the financing amount equals the dollar amount pledged). The interest rate for the 3 For 1, 2 For 1, and 1 For 1 financing options is 5.45%. For a loan with 100% financing of $100,000 and more, the rate will be 5.45%, and for a loan with 100% financing of up to $99,999.99 — 5.70%.

• RSP loans. An RSP loan is a financing solution to help clients contribute more to their RRSPs and benefit from compound returns. The minimum amount to borrow with an RSP loan is $2,500. Variable-rate RSP loans are available for terms of 1 to 10 years, while fixed-rate RSP loans are available for either 1 or 2 years. The variable interest rates range from 5.45% to 6.65%, and fixed interest rates range from 8.20% to 9.20%.

• TFSA loans. TSFA loans provide clients with financing of $5,000 and more for 1 to 10 years to optimize their TFSA contributions. These loans feature variable rates ranging from 5.45% to 6.20%.

• Distribution alliance programs. With Distribution alliance programs, B2B Bank makes certain financing solutions available exclusively through select insurance, mutual fund companies, and dealers.

• Home Equity Line of Credit (HELOC). Home equity lines of credit provide clients with financing of up to 65% of their home’s value. A HELOC is a revolving credit, meaning there is no need to re-apply for it after repaying the outstanding balance. With a HELOC, interest applies only to a borrowed amount. The eligible properties for this line of credit are properties with 1-4 units, either new constructions or existing properties, and owner-occupied properties. The variable interest rate for a home equity line of credit is 5.20%.

How to apply for a B2B Bank loan

Your advisor will apply for a loan on your behalf. 

B2B Bank has the Electronic Application Submission Entry (EASE) system in place to ensure a secure online loan application process. With EASE, an advisor fills out an online application form, prints the application, and hands it over to the client for signature (if necessary). After completing the application form, an advisor clicks the “Submit for Credit Review” button. Upon getting loan approval, an advisor sends the printed application with all supporting documentation to B2B Bank for funding.

Requirements

To qualify for a B2B Bank loan, you must be a Canadian citizen or resident of the age of majority in your province or territory. 

To apply for a loan, you will need to provide your advisor with the following documents:

• Proof of income — recent pay stubs, most recent T4, and most recent Notice of Assessment, two most recent years of Notice of Assessment (for commissioned sales employees, self-employed, and retired applicants), or two most recent years of T1 Generals (for applicants with rental income)

• Proof of assets — realty tax assessment (within one year) or municipal property assessment (most recent) for real estate properties, RSP statements, TFSA statements, Non-registered funds statements, and GIC statements for investment assets, and bank statements dated within 30 days for bank accounts

Pros and cons

Here are the pros of lending solutions from B2B Bank:

• The quick and easy loan application process

• Competitive interest rates

• A variety of assets qualifying as eligible collateral

• Penalty-free early repayment

Still, there are cons to keep in mind:

• Getting a loan approval requires you to have an eligible credit score, sufficient income, and collateral (for select financing options)

• Rates are subject to change without prior notice

• B2B Bank doesn’t have a mobile banking app to manage a loan account on the go

How to make a payment

B2B Bank loan payments represent pre-authorized debits from your B2B Bank account.