Lending Products

At NBF Services we offer a full range of lending products to meet your individual needs.

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RRSP Loans Available

RRSP Loans are a great tool to help top up your RRSP Contribution. RRSP Loans can be invested in any RRSP eligible investment.

RRSP Loan Q&A

What payment options are available?

Flexible payment options are available. You can choose from weekly to monthly payment dates.

Can I repay my RRSP loan without penalty?

Yes, RRSP loans can be paid off at any time without penalty - no payout fee and no minimum interest charge.

Can I transfer-in my existing RRSP loans into one?

Yes, you can combine your existing RRSP loans held on the same plan with the same borrower/co-borrower combination.

Can I extend my existing RRSP loan?

Yes, you can extend your existing RRSP loans to a maximum of ten years from the original funding date.

Why Defer My Payment Option?

You can choose to defer payments up to six months. You should know that this is NOT an interest-free period. The loan term begins on the funding date of the loan, not the first payment date. Many investors use this option of deferring the start date to allow enough time to receive a tax refund to repay the RRSP loan.

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Now You Can Transfer-in Your RRSP Loan

Consolidate your assets at NBF Services and Sterling Mutuals Inc., into one RRSP by transferring in the RRSP loan and assets. We'll arrange to repay your existing RRSP loan held by any other lender and arrange to lend you additional funds. By consolidating all of your registered accounts with NBF Services and Sterling Mutuals Inc., we will provide you with one statement, saving you time and money tracking your investment. In addition, with online access your accounts are available 24-7.

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Investment Loans

The 1 for 1 Investment Loan

A 1 for 1 loan is a revolving personal credit facility that allows you to buy mutual funds. With this type of lending facility, you can borrow an amount up to the amount brought forward in cash or existing non-registered mutual funds.

The 2 for 1 Investment Loan

Like the 1 for 1, the 2 for 1 is also a revolving credit platform which makes loan increases or dollar cost averaged loan advances a simple procedure. With the 2 for 1 you can borrow up to double the amount you bring forward in cash or non-registered mutual funds.

The 100% Investment Loan

The 100% Investment Loan is a term loan with principal and interest payments based on a long amortization period. The Loan is ideally suited to credit worthy investors that want to magnify their savings but don’t have the mutual fund securities required to take advantage of one of our two other loan products.

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Disclaimer: All Investment Loans are subject to meeting lending criteria. Using borrowed money to finance the purchase of securities involves greater risk than a purchase 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.

Investment Loans Q&A

How much can I borrow to invest?

The amount borrowed will be based on your financial plan and your borrowing limits at the lending facility.

What are my repayment options?

Minimum payment is the interest cost paid monthly.  You may also choose to amortize the loan with a principal and interest payment.

Monthly Payment Source?

Pre Authorized Payments from your Checking Account.

What types of investments can I invest in?

The Investment Loan Program is only for use with Mutual Funds issued under a prospectus. Our loan specific eligible list of funds contains over 40 of Canada's top fund management companies with hundreds of eligible funds to choose from.

Do I receive a statement of account?

Yes. You will receive an annual loan statement that provides financial details as well as a quarterly investment account statements that provides information on the investments.

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What Is a Margin Call?

The loan to value ratio (LVR) is allowed to float up to 80% on a 1 for 1, and 2 for 1 Loan. These are the Margin Call points for each loan type. Should a Margin Call occur, the lender requests that the account be brought down to an LVR of no greater than 75% for the 1 for 1 and 2 for 1 Loan. This can be accomplished by paying down your loan, by pledging more eligible securities, or a combination of the two.

* Ask about our no margin call options for all loan types.

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We encourage you to get professional advice when planning your investment portfolio. Click here if you would like to talk to one of our Advisors.

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Mortgages

Whether you're a first time home buyer, buying a new home or renewing your current mortgage we can help. We can review your needs and then refer you to one of our mortgage specialists. Below is information to help you plan for your mortgage financing needs.

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Mortgage Tip:

If your mortgage is coming up for renewal and you are considering moving to a different lender, start the process at least 60 days before your renewal date. Most lenders will guarantee their rates for at least 60 days and will offer the going rate at renewal if it is lower than the rate offered.

Mortgage Q&A

How much of a down payment is required to purchase a home?

A purchaser can buy with a 0% down payment, however price restrictions may apply. CMHC may insure the mortgage against default for up to 100% of the lending value of the house. Mortgages with less than 25% down must have Mortgage Loan Insurance provided by CMHC.

What is a pre-approved mortgage?

A pre-approved mortgage puts your financing in place before you make an offer on a home. Usually, the sale of a home is contingent upon the buyer securing the required financing within an agreed-upon time frame. With a pre-approved mortgage you'll be able to make a firm offer for the home of your choice.

What is the difference between an open and closed mortgage?

An open mortgage allows you the flexibility to pay down the principal amount at any time whereas the closed mortgage restricts the amount you can pay down of the principal amount in any given year. As well a closed mortgage may be discharged at a defined cost, usually an Interest Rate Differential (IRD) prior to the end of the term.

What is a convertible mortgage?

This allows you to convert your mortgage to a new one with a longer term while it is still in effect.

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Using Your RRSP to Purchase a Home

First time home buyers can use the Home Buyers Plan.

How it works

If you are a first time home buyer, the Home Buyers' Plan (HBP) lets you withdraw up to $20,000 from your RRSPs for a home purchase. The withdrawn amount must be repaid over 15 years, subject to a minimum annual repayment that is 1/15 of the amount withdrawn. If the full $20,000 is withdrawn, the minimum annual repayment is $1,333. If less than the minimum is repaid in any particular year, the balance is added to your income.

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Choosing a Mortgage

Today, there are numerous mortgage options available.

How can we help?

A NBF Services can review your needs and refer you to one of our mortgage specialists. We can help you find the lowest rate and explain all your options.

Mortgage categories

Fixed-rate:

6 month, 1, 2 & 3 year (open, closed and closed - convertible) 4, 5, 7 & 10 year closed

Variable-rate:

3, 4 and 5 year (open, closed, closed-convertible and capped)

Split-term:

Combination of all possible terms (6 month through 10 years)

What terms and payment options should you choose?

There are advantages in choosing short-term rates or long-term rates. It all depends on your personal situation.

Short-term mortgage rates

If you anticipate that rates will remain low and stable, and you are prepared to chance increases, then you may want to arrange a short term mortgage.

By rolling over your term say, every 6 months or float your rate against prime, with the option of locking into a longer term at a later date, you can save with a lower rate using a short-term mortgage. But be prepared, a sudden upward movement in rates could have a significant impact on your payments.

Long-term mortgage rates

Generally a term of 3 years or more would be considered long term when you're choosing a mortgage. Long-term rates are higher than short-term rates. When choosing a long-term rate you avoid rate increases because your rate is locked in. This option offers certainty of your payments allowing you to manage your expenses accordingly.

Using a split-term mortgage for the ultimate flexibility

With a split-term mortgage, your interest rate risk is diversified by splitting your mortgage into two parts. For example, you could split a $100,000 mortgage into two $50,000 parts with interest rate terms of 6 months and a 3 year terms negotiated at the best rates. 

Prepayment options to suit your needs

Many lenders will structure a mortgage to suit your needs. You can make lump sum payment – usually 10% to 20% of the original principal balance or double-up a payment.

Payment Frequency

Pay your mortgage with the frequency that matches your cash flow. Most mortgages lenders allow weekly, bi-weekly or semi-monthly payments. Take advantage of the weekly and bi-weekly payments to accelerate the principal pay down and to reduce the amortization.

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