Lending solutions

¹ RBC Credit Access Line is a securities-based, demand line of credit offered by Royal Bank of Canada and RBC Bank (Georgia), N.A., Equal Opportunity Lenders and bank affiliates of RBC Capital Markets, LLC. Subject to Credit Approval. Securities-based loans involve special risks and are not suitable for everyone. You should review the provisions of the RBC Credit Access Line agreement and related disclosures, and consult with your own independent tax and legal advisors about any questions you have prior to using RBC Credit Access Line. Considerations should be given to loan requirements, portfolio composition and diversification, time horizon, risk tolerance, portfolio performance expectations, and individual tax situations. There are important risks associated with securities-based loans that you should consider: 

• You will be required to deposit additional cash or securities, or pay down the line of credit, should the value of your securities decline below the percentage equity you must maintain or the percentage equity you must maintain increase. During a market downturn in which the securities in your portfolio decline in value, the percentage equity you must maintain will cause your losses to be greater than if there were no loan against your portfolio. Your losses can exceed your original collateral amount.   
• You are not entitled to an extension of time to satisfy equity percentage requirements.
• Should you be unable to maintain the required percentage equity, some or all of your securities may be sold without prior notice to you. In the event of such a sale, you will not be entitled to choose which securities are sold, your long-term investment strategy may be interrupted and you will be responsible for all resulting fees and tax consequences.
• Royal Bank of Canada may increase equity percentage requirements at any time without prior notice to you and may require you to pay down your line of credit, in part or in full, at any time and for any or no reason.
• The rates, terms and conditions of your RBC Credit Access Line are subject to change in accordance with the terms of the RBC Credit Access Line agreement.
• Should the rate of your RBC Credit Access Line be set to float against an index, you will be subject to greater interest costs in a rising interest rate environment.

RBC Credit Access Line is a non-purpose facility. The proceeds of an RBC Credit Access Line may not be used to purchase, trade, or carry margin stock or repay a margin debt that was used to purchase, trade, or carry margin stock. Royal Bank of Canada may demand repayment of all proceeds of RBC Credit Access Line advances that it has reasonable basis to believe were used to purchase or carry margin stock.

RBC Wealth Management, a division of RBC Capital Markets, LLC, is a registered Broker-Dealer, Member FINRA/NYSE/SIPC, and is not a bank. Where appropriate, RBC Capital Markets, LLC has entered into arrangements with Royal Bank of Canada and RBC Bank (Georgia), N.A. to help facilitate and service your RBC Credit Access Line. Neither RBC Wealth Management, nor its affiliates or employees provide legal, accounting or tax advice. All legal, accounting or tax decisions regarding your accounts and any transactions or investments entered into in relation to such accounts, should be made in consultation with your independent advisors. No information, including but not limited to written materials, provided by RBC Wealth Management or its affiliates or employees should be construed as legal, accounting or tax advice. See also RBC Credit Access Line for more information.

² Tailored loans are offered through Royal Bank of Canada’s (RBC’s) New York Branch, an affiliate of RBC Wealth Management, a division of RBC Capital Markets, LLC. Products and services offered by RBC’s New York Branch are subject to their terms and conditions. RBC Wealth Management and/or its employees may receive compensation from RBC Wealth Management for referring clients to RBC’s New York Branch. Securities-based loans involve special risks and are not suitable for everyone. You should review the provisions of any agreement and related disclosures, and consult with your own independent tax and legal advisors about any questions you have prior to using securities-based loans or lines of credit. Additional restrictions may apply.

This material is being provided for educational or informational purposes only and does not take into account any client or prospective client’s objectives or financial situation. Securities-based loans involve special risks and are not suitable for everyone. You should review the provisions of any agreement and related disclosures, and consult with your own independent tax and legal advisors about any questions you have prior to using securities-based loans or lines of credit. Additional restrictions may apply. Subject to credit approval.

RBC Wealth Management and/or your financial advisor may receive compensation in conjunction with offering or referring these services.

If borrower is an irrevocable trust, the Trustee cannot be RBC or its affiliates. Borrowing against the cash surrender value of an insurance policy may subject the policyholder to financial risk, including the potential loss of policy coverage, in an event of default under the loan agreement.

RBC Wealth Management is not a bank. Where appropriate, RBC Capital Markets, LLC has entered into arrangements with Royal Bank of Canada to help facilitate and service your securities-based line of credit. Neither RBC Wealth Management, nor its affiliates or employees provide legal, accounting or tax advice. All legal, accounting or tax decisions regarding your accounts and any transactions or investments entered into in relation to such accounts, should be made in consultation with your independent advisors. No information, including but not limited to written materials, provided by RBC WM or its affiliates or employees should be construed as legal, accounting or tax advice.

³ Purchasing securities on margin may not be suitable for all investors. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, the firm can take action, such as to issue a margin call and/or sell securities or other assets in any of your accounts held with the member, in order to maintain the required equity in the account. Before you sign a Margin Agreement, it is important that you read and fully understand the Margin Disclosure Statement, which describes additional risks involved in trading securities on margin. See the Margin Disclosure Statement for more information.