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Overview
A portfolio line of credit lets you borrow cash using your investments as collateral. This lets you access funds without selling your assets, so you can stay invested for long-term growth.
If you have a business account, you can also open a business portfolio line of credit.
When you open a portfolio line of credit, you choose which investment accounts to use as collateral. The amount you can borrow (your credit limit) is based on the value of the assets in those accounts. You can borrow up to your limit at any time and pay interest only on the amount you borrow.
Eligibility
You must individually have at least $25,000 in assets under management across all accounts with us to open a portfolio line of credit.
Open a personal portfolio line of credit
A portfolio line of credit is a separate account. You can open one by following the steps below:
- Log in to the Wealthsimple app
- Swipe right to the Spend tab
- Tap Add account
- Select Portfolio line of credit from the list
- Tap Open account
- Follow the prompts to select your collateral accounts and confirm your details
- Log in to your Wealthsimple profile
- Select + Add an account from the Home page
- From the All accounts tab, select Portfolio line of credit
- Select Open account
- Follow the prompts to select your collateral accounts and confirm your details
Choose your collateral accounts
When you open your account, you choose which investment accounts to use as collateral. You can link up to five of the following accounts to secure your line of credit. They can be trading or managed (including Classic and Income portfolio) accounts:
- Non-registered accounts (except margin accounts)
- TFSAs
Restrictions:
- We don't support using joint accounts.
- We don't support using FHSAs, RRSPs, RESPs, or LIRAs.
- You can't link an account that's already linked to a margin account.
- We don't support the following portfolio types: Alternative investments (Private Market Fund, Private Credit, and Private Equity), Summit, Target Date, Direct Indexing, Vanguard Fixed Income, or Money Market (as of November 14, 2026).
- We don't support using the Savings account.
Collateral minimum
To be eligible as collateral, the account must provide a minimum credit limit of $1,000 CAD. The credit limit provided by an account is based on several factors, including the value of the assets in the account.
As of November 14, 2026, cash held in a managed account doesn't contribute to your credit limit. Because a Money Market portfolio holds only cash, it can't meet the $1,000 minimum and can't be used as a collateral account.
Add or change your collateral accounts
You can change which accounts you use as collateral at any time in the Wealthsimple app (not available on web):
- Log in to the Wealthsimple app
- Tap your Portfolio line of credit account
- Tap Settings in the top right corner
- Tap Collateral
- Select the accounts you want to use as collateral
- Review the Account linking disclosure if prompted and tap Confirm
- Tap Save to apply the changes
How to increase your credit limit
You can increase your credit limit in the following ways:
- Sell investments in a trading account you use as collateral
- Transfer eligible holdings into a collateral account or cash into a trading account you use as collateral
- Add another account as collateral to your portfolio line of credit
Borrow cash
Once your account is set up, you can borrow cash up to your credit limit. We transfer the cash you borrow to another account you choose. You only pay interest on the amount that you borrow.
Follow these steps to borrow cash:
- Log in to the Wealthsimple app
- Tap your Portfolio line of credit account
- Tap Borrow
- Enter the amount you wish to borrow
- Select the account you want to transfer the funds to (for example, your chequing account)
- Follow the prompts to complete the transfer
- Log in to your Wealthsimple profile
- Select your Portfolio line of credit account
- Select Borrow from the right side of the account screen
- Enter the amount you wish to borrow
- Select the account you want to transfer the funds to (for example, your chequing account)
- Follow the prompts to complete the transfer
Repay your loan
You can pay back your loan balance at any time, and there's no minimum payment required. We calculate interest daily and add it to your loan balance each month until you pay it off.
Follow these steps to repay your loan:
- Log in to the Wealthsimple app
- Select your Portfolio line of credit account
- Tap Repay
- Select the account you want to pay from
- Choose how much you want to pay:
- Total balance with interest
- Total balance
- Interest only
- Custom amount
- Follow the prompts to confirm the payment
- Log in to your Wealthsimple profile
- Select your Portfolio line of credit account
- Select Repay from the right side of the account screen
- Select the account you want to pay from
- Enter the amount you wish to repay
- Follow the prompts to confirm the payment
If you'd like to repay your loan using available cash from your collateral account, you can select that account as your payment source using the steps above. You can do this yourself, even if you've reached your credit limit.
If you'd like to make recurring payments, you can set up a recurring transfer to your portfolio line of credit.
View accrued interest
You can see how much interest you've accrued each month in your portfolio line of credit account. We add interest to your loan balance on the 1st of each month, and it shows in your account activity.
Interest rate
The interest rate for the portfolio line of credit is based on your client status:
| Status | Rate |
|---|---|
| Core | Prime + 0.5% |
| Premium | Prime + 0% |
| Generation | Prime - 0.5% |
Remove a collateral account
If you want to fully remove an account from your portfolio line of credit, for example, before transferring it to another institution, you may need to pay down your loan balance first.
Note:
- If you have other linked collateral accounts: You only need to pay down enough of your loan balance so that your remaining collateral still covers what you owe.
- If this is your only collateral account: You'll need to pay down your entire loan balance, including any accrued interest, before you can unlink it.
Once your balance is paid down, follow these steps in the Wealthsimple app (not available on web):
- Log in to the Wealthsimple app
- Tap your Portfolio line of credit account
- Tap Settings in the top right corner
- Tap Collateral
- Deselect the account you want to remove
- Review the Account linking disclosure if prompted and tap Confirm
- Tap Save to apply the changes
Frequently asked questions
Do I have to complete a credit check to open a portfolio line of credit?
No, we don't run a credit check when you open a personal or business portfolio line of credit.
What's the difference between a portfolio line of credit and a personal line of credit?
A portfolio line of credit uses your investments as collateral, allowing you to borrow without selling assets, while a personal line of credit is unsecured and based solely on your creditworthiness.
How is this different from borrowing from my margin account?
Your portfolio line of credit is a margin loan, but it's less risky. Here's why:
- Your credit limit is more conservative, so there's a bigger buffer to protect you if your investment collateral loses value.
- People typically use their portfolio line of credit to withdraw cash for everyday needs, not to buy more investments. This means losses aren't as magnified.
Learn more about borrowing from your margin account.
Can I claim interest as a tax deduction?
If you borrow money to invest, the interest is generally tax-deductible. However, if you borrow for personal use, you generally can't claim that as a deduction. We recommend checking with a qualified tax expert for your specific situation.
How does borrowing affect my client status?
Borrowing cash from your portfolio line of credit and withdrawing it from Wealthsimple effectively reduces your assets under management. This can reduce your client status (for example, moving from Premium to Core).
Can I have both a business and a personal portfolio line of credit?
Yes. The business and personal portfolio lines of credit are separate products. You can hold both at the same time, as long as each one uses different eligible collateral accounts.
Can I move holdings out of an account I use as collateral?
If an account is being used as collateral for your portfolio line of credit, you may not be able to transfer holdings out of it, and the Move holdings option may not appear for that account. To move holdings out, you can first remove the account as collateral. You can't remove an account if it would make your credit limit lower than your loan balance, so you may need to repay some or all of your loan first. Learn more about transferring holdings between Wealthsimple accounts.
What is the portfolio line of credit discount?
The portfolio line of credit discount is a Generation benefit that reduces your borrowing costs. We show this discount separately from margin benefits to keep things clear. You can view your specific rates in your account benefits section.
Will the co-owner of my joint chequing account see how much credit I have available?
Yes, indirectly. Your co-owner won't see your portfolio line of credit on the overdraft detail page, but they can work out how much credit you have available when overdraft protection covers one of their transactions. For example, if overdraft protection covers your co-owner's bill payment, they'll see how much credit you have available, along with their own cash balance.
What happens if I pay more than I owe on my portfolio line of credit?
The extra money stays on your portfolio line of credit and shows as a negative balance. It’s still your money, there’s no interest on it, and you can move it to another account whenever you like.
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