Financing

Financing form – portfolio acquisition

Financing form – portfolio acquisition

Objective

Acquiring a book of business may be a difficult task and a critical step in a representative’s career. In order to facilitate the purchase of a block of mutual fund assets from another Investia representative, a financing program is offered through iA Financial Group, the parent company of Investia. This program offers favourable terms and conditions to meet your financing needs.

Program details

Eligible amounts

The loan must remain within the limits of our financing program, i.e.:

  • check_circleThe minimum financing amount is $60,000
  • check_circle

    The maximum financing amount is $2,000,000 and cannot:

    • exceed 100% of the purchase price of the mutual fund assets
    • exceed 4 times the net annual amount of commissions and fees from the purchased mutual fund assets

If you intend to apply for an amount greater than the above-mentioned limits, please contact your regional vice-president (RVP) before submitting your application. Additional authorization is required.

Interest rate

  • check_circleThe interest rate is fixed
  • check_circleThis fixed rate is based on the Royal Bank of Canada’s prime rate plus a markup of a certain percentage
  • check_circleThe markup is guaranteed for the entire loan term and is based on (i) the loan amount, (ii) the loan term and (iii) the ratio of the loan amount and the net annual amount of commissions and fees from the purchased mutual fund assets
  • check_circleThe interest rate is renewed in the 5th year at the latest prime rate and is effective for the remainder of the loan term, if applicable
  • check_circleIf the prime rate changes between the date of your application and the date of approval, the lowest prime rate will be used to calculate the interest rate
Loan amount/Loan term 5 years 7 years 10 years*
$60,000 to $199,999 PR + 2.75% PR + 3.00% PR + 3.25%
$200,000 to $499,999 PR + 2.00% PR + 2.25% PR + 2.50%
$500,000 to $2,000,000 PR + 2.00% PR + 2.00% PR + 2.25%

Furthermore, the following percentage is added to the markup based on the ratio of the loan amount and the net annual amount of commissions and fees from the purchased mutual fund assets:

  • check_circleFor ratios between 3.01 and 3.50, 0.50% is added to the interest rate
  • check_circleFor ratios between 3.51 and 4.00, 1.00% is added to the interest rate.

*10-year amortization is not available for loans of $100,000 or less.

Loan term and amortization period

  • check_circle5-year, 7-year or 10-year loan terms
  • check_circleThe amortization period (or repayment schedule) is equal to the loan term

Repayment terms

  • check_circleWeekly payroll deductions
  • check_circleEarly repayment option, without fees or penalties

Fees

  • check_circleNo fees on standard applications
  • check_circle$1,000 administrative fee to modify a previously submitted application

Capital repayment holiday

  • check_circleA capital repayment holiday may be considered, though only exceptionally and on a case-by-case basis. Contact your RVP.

Required information and documents**

  • check_circlePurchase/sale agreement or transfer of clientele agreement signed by both parties
  • check_circleA life insurance policy covering an amount that is at minimum equal to the loan amount is required and must be assigned/hypothecated in favour of “Industrial Alliance Insurance and Financial Services Inc.”
  • check_circleIn the case of co-borrowers or corporate loans, several insurance policies may be assigned as long as the total value of the policies covers the amount of the loan
  • check_circleProof that taxes are up to date (individual and corporate, if applicable)
  • check_circleA credit check will be performed for all loan applications (an Equifax credit score of 700 or higher is required)

** For a complete list of the required documents, please refer to the “List of required documents for a standard iA loan” document provided by your RVP.

Procedure for the Representative-buyer/borrower

Please speak with your Regional Vice-President before submitting your application.

  1. Complete the financing application (attach document)
  2. Forward the signed financing application as well as all required documentation to your RVP
  3. A review of your financing application only begins once ALL the required documents have been submitted, and you may be asked to provide clarification or additional information
    • Submit your application to your RVP at least six weeks before the closing date of the transaction (i.e., the disbursement date)
    • The loan agreement is prepared and approved based on your application and will be sent to you for electronic signature
    • The loan is disbursed into your commission account or to another party, according to the payment instructions we have accepted
  4. Forward the transfer of clientele instructions or change in code to registration@investia.ca.

Please note that the information provided on this page regarding the financing program is meant only for your guidance. It is not binding and in no way represents a formal offer or guarantee of financing. The rates, conditions and options of the financing program are subject to change at any time without notice.

Reference documents (links)