RBC Express Credit
A Convenient Way to Borrow Money
Convenient Access to Funds
RBC Express Credit gives you access to cash based on the value of your investment accounts. Rather than selling investments in your portfolio or disrupting your investment strategy, RBC Express Credit allows you to easily borrow money for your personal needs with assets that you already own.
Designed for Your Needs
Like many clients, you may have a high percentage of your money committed to fixed assets and long-term investments. RBC Express Credit enables you to conveniently borrow funds for unexpected expenses or new opportunities.
RBC Express Credit allows you to borrow what you need when you need it, to help meet your financing goals. For example, you can:
- finance a major purchase such as a car or boat,
- arrange short-term (bridge) financing,
- make additional investments in securities,
- help pay for your children’s or grandchildren’s education expenses,
- fund home improvements, or
- consolidate higher-cost loans or credit cards.
A Variety of Benefits
RBC Express Credit is the quickest, easiest way to access funds at RBC. There are no applications beyond a signed RBC Express® Credit agreement, no processing delays, and no closing costs. Credit history is not reviewed. You can simply contact your financial advisor to make arrangements to receive the funds you need. Furthermore, if you have an Investment Access® Account, you can write your own loan — just by writing a check or using your RBC Visa® Platinum Debit Card.
You can pay off your balance when it is best for you.
- There is no fixed repayment schedule,
- your balance increases as interest is charged to your account, and you can
- set your own repayment terms.
When you decide to repay the loan or a portion of it, you have several options:
- depositing additional funds in your investment account,
- selling securities, and
- using the interest and dividends paid on the securities in your investment account, as they accrue, to make the repayments.
As long as you maintain minimum margin requirements, you control when you pay off your balance. And, if your portfolio increases in value while you have a loan, the interest rate charges may be offset by your portfolio gains.
When you borrow against your securities you will incur interest charges on the amount of your loan balance. The interest charges may be tax-deductible on qualified investment purchases. Consult with a professional tax advisor for more information.
Borrowing Potential is Based On Investment Assets in the Account
Because your investment assets are used as collateral, the amount you can borrow varies depending on both the value and type of securities in your account. Generally, the greater the value of your investment assets, the more you can borrow.
The value of securities will fluctuate, so work with your financial advisor to monitor your investment assets regularly, particularly during volatile market conditions. For RBC Express Credit to be an effective financing option, your financial advisor will help you carefully consider the quality of the investments and the amount you want to borrow. When the amount borrowed is less than the maximum amount available, it provides you a cushion to protect against having to deposit funds and/or sell securities when the market declines. Work with your financial advisor to develop a plan to determine whether RBC Express Credit can help you achieve your goals.
Typically, you can borrow up to 50% of the market value of most listed stocks, certain bonds and mutual funds; however, RBC Express Credit is not available in certain types of accounts.
What You Should Know About RBC Express Credit
RBC Express Credit is a margin product that may not be suitable for all investors because borrowing on margin and using securities as collateral involves certain risks. Market conditions can magnify any potential for loss and potential returns on investments may be negatively impacted by the costs associated with RBC Express Credit. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and as a result, the firm can take action, such as to issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account.
RBC Express Credit interest rate charges are determined by the amount of your loan. Before you sign a Margin Agreement, it is important that you read and fully understand the margin disclosure statement, which describes additional risks involved in trading securities on margin.
For More Information
Your financial advisor is available to answer any questions you may have about accessing funds through RBC Express Credit and can help you determine if this is a solution that fits your financing needs.