Overview

The 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.

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.

Open a portfolio line of credit

A portfolio line of credit is a separate account. You can open it directly in the Wealthsimple app:

1. Log in to the Wealthsimple app
2. Swipe right to the Spend tab
3. Tap Add account
4. Select Portfolio line of credit from the list
5. 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 use the following accounts to secure your line of credit:

• Self-directed non-registered accounts (except margin accounts)
• Self-directed TFSAs

Collateral minimum

In order to be eligible to be used as collateral, the account must provide a minimum credit limit of $1,000 CAD. The credit limit provided by an account is calculated by several factors based on the value of your assets in the account.

Add or change your collateral accounts

You can change which accounts to use as collateral at any time:

1. Log in to the Wealthsimple app
2. Tap your Portfolio line of credit account
3. Tap Settings in the top right corner
4. Tap Collateral
5. Select the accounts you want to use as collateral

How to increase your credit limit

You can increase your credit limit in the following ways:

• Sell investments in your collateral accounts
• Transfer eligible holdings or cash into a collateral account
• 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. The cash that you borrow will be transferred to another account that you choose. You only pay interest on the amount that you borrow.

Follow these steps to borrow cash:

1. Log in to the Wealthsimple app
2. Tap your Portfolio line of credit account
3. Tap Borrow
4. Enter the amount you wish to borrow
5. Select the account you want to transfer the funds to (for example, your Chequing account)
6. Follow the prompts to complete the transfer

Repay your loan

You can pay back your loan balance at any time, and there is no minimum payment required. Interest is calculated daily and added to your loan balance each month until you pay it off.

Follow these steps to repay your loan:

1. Log in to the Wealthsimple app
2. Select your Portfolio line of credit account
3. Tap Repay
4. Select the account you want to pay from
5. Enter the amount you wish to repay
6. Follow the prompts to confirm the payment

View accrued interest

You can view the amount of interest that has been accrued each month by tapping into your portfolio line of credit account. Interest is added to your loan balance on the 1st of each month and will be displayed on your account activities.

Interest rate

The interest rate for the portfolio line of credit is based on your client plan:

Related articles

• Understand portfolio line of credit risks and limits