They’re Back…..

Equitable Life’s RRSP and Investment Loan Programs

Loan Programs 2004Are your clients’ financial goals playing hard to get?

Equitable Life’sInvestment and RRSP Loan Programscan help your clients get them sooner!

Help your clients get their goals sooner…

From January 1, 2004 to January 31, 2004 both the RRSP and Investment loan interest rates are

Prime* Minus 1%For loans up to and including

$14,500From February 1, 2004 to March 1, 2004 the loan interest rate will be Prime* MINUS 0.5% for Investment and RRSP Loans up to and including $14,500.* “Prime” is the prime rate in effect for the Royal Bank of Canada as of the effective date of the loan.

*It is important to note if your client has previously defaulted on a loan from Equitable Life or been declined by us for an Investment Loan or an RRSP Loan in excess of $13,500 your client will not be eligible for a loan with Equitable Life. RRSP Loans in excess of $14,500 are subject to financial underwriting and approval by Equitable Life. All Investment loans are subject to underwriting.

RRSP & Investment Loan Interest Rates…

Loan Amount Loan Term Interest Rate

$14,500 or less 12 month maximum Prime minus 0.5% Feb. 1, 2004 - Mar. 1, 2004

>$14,500 - $20,000 12 month maximum Prime

>$14,500 $20,000 > 12 months 24 months Prime plus 1%

> $20,000 - $30,000 1 month - 36 months Prime plus 1%

Prime is based on the Royal Bank of Canada’s Prime Rate at the effective date of the loan!

$14,500 or less 12 month maximum Prime minus 1% Jan 1, 2004 – Jan 31, 2004

RRSP 2004Once again, Equitable Life is fortunate

to be able to provide you with our “unique” RRSP Loan Program!

RRSP Contribution Limits

Year Annual Limit (RPP Non Contributors)

1991 The lesser of 18% earned income or $11,500

1992 & 1993 The lesser of 18% earned income or $12,500

1994 The lesser of 18% earned income or $13,500

1995 The lesser of 18% earned income or $14,500

1996- 2002 The lesser of 18% earned income or $13,500

2003 The lesser of 18% earned income or $14,500

2004 The lesser of 18% earned income or $15,500

2005 The lesser of 18% earned income or $16,500

2006 The lesser of 18% earned income or $18,000

2007 & beyond

Indexed to average growth in wages

How much can your client contribute?

On or before March 1, 2004 the maximum your client can contribute for a deduction on his or her 2003 income taxes is:

Any unused RRSP contribution room carried forward, plus

The lesser of 18% of the client’s 2002 income or $14,500, plus

Any Pension Adjustment Reversal (PAR) arising from termination of RPP and/or DPSP membership, less

Any pension adjustment and net past service adjustments due to membership in an RPP or DPSP

RRSP Loan Features

Automatic Approval* on RRSP Loans up to and including $14,500

*It is important to note if your clients have previously defaulted on a loan from Equitable Life or been declined by us for an Investment Loan or an RRSP Loan in excess of $13,500 they are not eligible for a loan with Equitable Life. RRSP Loans in excess of $14,500 are subject to financial underwriting and approval by Equitable Life.

More RRSP Loan Features

Equitable Life RRSP Loan interest rates are fixed for the term of the RRSP Loan Interest is calculated monthly on

the declining balanceYour clients can borrow

between $1,000 and $30,000**It is important to note if your clients have previously defaulted on a loan from Equitable Life or been declined by us for an Investment Loan or an RRSP Loan in excess of $13,500 they are not eligible for a loan with Equitable Life. RRSP Loans in excess of $14,500 are subject to financial underwriting and approval by Equitable Life.

More RRSP Loan Features

Lump Sum Repayments Your client can make a lump sum partial

repayment towards the RRSP loan at any time without penalty, and

• Can choose to have the monthly payment reduced; or

• Reduce the repayment period; or• Pay off the loan in full at any time without penalty

Spousal RRSPs Equitable Life’s RRSP Loan program can be

used to fund Spousal RRSPs• Remember both your client and your client’s spouse or life

partner personally guarantee and sign the promissory note.

More RRSP Loan Features

“Overlapping loans” If your client took an Equitable Life RRSP

Loan last year, he or she may take a second loan provided:

• Your client has a successful repayment history• Has only 1 or 2 loan payments left • Has a combined total of $14,500 or less (remaining

payments + new loan)

90 Day Payment Deferral Giving your clients the opportunity to use their

tax refunds (if applicable) towards their loans!• Loan interest will accrue from the effective date of the loan

and the deferral does not extend the loan term or repayment schedule.

Administration

What’s Required for an RRSP Loan? Loans up to and including $14,500 are

Automatically* approved, loans in excess of $14,500 are subject to underwriting and approval by Equitable Life

Personal Guarantee of borrower (promissory note)

Restrictions on transfers/withdrawals until the entire loan and interest is repaid

*It is important to note if your clients have previously defaulted on a loan from Equitable Life or been declined by us for an Investment Loan or an RRSP Loan in excess of $13,500 they are not eligible for a loan with Equitable Life. RRSP Loans in excess of $14,500 are subject to financial underwriting and approval by Equitable Life.

Important Date to Remember

In order for your clients to receive a tax receipt for the 2003 income tax year, the contribution deadline is…

Midnight, Monday March 1, 2004

Note: Contributions must be in your courier bag no later than March 3, 2004!

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Investment Loan Program 2004

A Loan to top up your client’s savings…

Many Canadians focus on saving for their retirement through RRSPs but neglect the importance of building a non-registered portfolio

Having assets accumulate on a non- registered basis for retirement can help ease the reliance on RRSPs which are fully taxable upon withdrawal

Why suggest a top-up of savings with an Investment Loan …

Only the growth on your clients’ investments is taxable when their funds are withdrawn

Investments have the potential to generate tax-preferred income

Interest payable on your client’s Investment Loan may be tax deductible (always consult a tax or legal professional for advice)

Further diversify their investment assets Put time on their side. Use the power of

compound growth and get a lump sum working for your clients today

Equitable Life Investment Loans…

The loan rate is fixed. No need to worry about your clients’ monthly payments changing should interest rates increase

No margin calls regardless of the value of your client’s investment

Highly competitive loan interest rates Borrowing to invest in the Segregated

Funds protects against downside investment risk due to maturity guarantees

It is important to note that borrowing to invest in the Segregated Funds can magnify both potential gains and losses

When are these loans available…

You can apply for an Investment Loan with Equitable Life® at any time of the year!

Need Details on RRSP or Investment Loan Interest Rates?

Visit our website:www.equitable.ca

Call Equitable Life’s Rate Hot Line:

1-800-668-4095Press “5”

Help your clients get their goals sooner…

From January 1, 2004 to January 31, 2004 both the RRSP and Investment loan interest rates are

Prime* Minus 1%For loans up to and including

$14,500From February 1, 2004 to March 1, 2004, the loan interest rate will be Prime* MINUS 0.5% for Investment and RRSP Loans up to and including $14,500.* “Prime” is the prime rate in effect for the Royal Bank of Canada as of the effective date of the loan.

*It is important to note if your clients have previously defaulted on a loan from Equitable Life or been declined by us for an Investment Loan or an RRSP Loan in excess of $13,500 they are not eligible for a loan with Equitable Life. RRSP Loans in excess of $14,500 are subject to financial underwriting and approval by Equitable Life. All Investment loan are subject to underwriting.

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