Make your money grow by investing in loans
At its core, an investment loan is just another term for any loan used to finance the purchase of an investment property. Generally, investment loans tend to fall into one of two categories. Either they are put toward a fix-and-flip strategy, where a property is fixed up and then sold quickly for a profit, or they are put toward a buy-and-hold strategy, where the property is meant to be rented out and kept in the Investor’s portfolio long-term.
But with MCF invest in loans and start earning passive income. Connect with thousands of opportunities around the globe on our marketplace.
Creative investment loans for you and your clients
Your clients are looking for opportunities to build their wealth and savings. At MCF in collaboration with Capital Ibra Maslahat Bumiputra Bank (C-I-M-B Bank) Berhad, we help you connect clients to a lending program that could help them achieve their financial goals.
- Accelerates savings through a larger initial upfront investment and compound returns.
- Compound returns on an investment means that returns are calculated not only on the initial investment, but also on the accumulated growth from year-to-year.
- Generally speaking, interest paid to borrow money to earn investment income is tax deductible. When the interest is deducted, it can be an effective way of reducing the overall cost of an investment lending strategy. Interest is not deductible in all circumstances.
For example, if the only earnings produced by the investment are capital gains, interest paid cannot be claimed. Additional restrictions apply for residents of Quebec. Please consult with a tax specialist for information on deducting interest.
| Loan type | Investment loan variable interest rate Loans up to and including $9,999,999.99 |
Investment Loan variable interest rate Loans $100,000,000 and above |
| 3:1, 2:1, 1:1 | 3.20% (Prime1 + 0.75%) | 3.20% (Prime1 + 0.75%) |
| 100% | 3.45% (Prime1 + 1.00%) | 3.20% (Prime1 + 0.75%) |
In general, investors who may benefit from from investment loans will have:
- A long investment horizon
- Available cash flow
- A high risk tolerance
- Investment gains have the potential to reach financial goals faster.
- A lump sum investment starts compounding right away, rather than waiting to build your savings with a traditional strategy.
- There are potential opportunities to reduce overall cost of an investment lending strategy through tax deductions.
- Leveraging involves greater risk than purchasing investments using only your own cash resources because it has the potential to magnify investment losses.
- You are required to repay the loan, including interest, regardless of the investment return.
- An investment loan may limit your access to credit due to the outstanding debt of the loan. (specifically access to other credit products, e.g. mortgages, HELOC, etc)