2007-2008 RRSP Loan Program by sofiaie



RRSP Loan Program

Value, Choice and Ease
When it comes to RRSP loans, it's important to be able to provide your clients with great value. At B2B Trust, we believe that
begins with a Loan Program that offers competitive rates, a broad range of options and simple, easy administration. That's why,
in association with Northwest Mutual Funds Inc., we've created an RRSP Loan Program that focuses on offering maximum value,
choice and ease and helps you to meet more of your clients' needs ... more often.

Key program benefits

Value                                                     Choice                                                   Ease
Competitive rates                                         Choice of product                                        Consolidate your clients’ RRSP loan assets and
Choose either a one- or two-year variable rate RRSP       Choose from a variable or fixed rate product. For        provide one single B2B Trust RRSP loan.
loan at Prime.                                            clients worried about rate increases, simply lock-in
                                                                                                                   Prepayments made easy
                                                          the rate and relax!
Prime rate RRSP loans available for larger amounts.
                                                                                                                   Deferral payment option: up to 180 days
                                                          Flexible terms
Simplified pricing
                                                          Choose the term that best suits your client:
No confusing contribution loan options –
                                                          • variable rate: one to ten years
one straightforward grid.
                                                          • fixed rate: one or two years
Fast funding of approved loans within one business
                                                          Any amount
day of receipt of original documentation.
                                                          No cap on RRSP loan amounts – great for clients
Fully open loans that can be paid off at anytime          with plenty of unused contribution room.
without penalty.

RRSP lending rates*

     Amortization period                                             Variable rate                                               Fixed rate
                    1 year                                                   PRIME                                                 Prime + 1.00%

                    2 years                                                  PRIME                                                 Prime + 1.50%

                  3–5 years                                            PRIME + 1.00%                                                     --

                  6–10 years                                           PRIME + 2.00%                                                     --

* The Prime Rate is Laurentian Bank of Canada Prime Rate, which may fluctuate from time to time. B2B Trust is a wholly-owned subsidiary of Laurentian Bank of Canada.
  All rates are subject to change without prior notice. The annual percentage rate (APR) cost of borrowing for a one-year term fixed rate RRSP loan of $10,000 is 7.25%
  (Prime Rate plus 1% at October 1, 2007). The APR presented is an example only. The APR will vary depending on the amount borrowed and the loan features selected.
  The interest rate applicable to the loan and the associated borrowing costs may vary with fluctuations in the Prime Rate.

For Advisor Information Only

Before you see your client – Pre-screening tips

The Advisor’s role
As a financial advisor, your role is to assess the suitability of using borrowing as an investment growth strategy based on each
client’s individual financial circumstances. Gaining a better understanding of each person’s financial situation and future income
needs will help to keep your relationships strong, healthy and productive.

B2B Trust’s role
Companies that lend money assess loan applicants for the risk of default. It is standard practice among lenders to evaluate an
applicant’s ability to repay a loan, as well as to calculate their net worth and review their credit history. Together, this information
allows lenders to better assess future debt repayment behaviour.
Credit applications are considered within the context of a number of variables, such as:

 Income                            Net Worth                                      Debt
     Salary                           A home registered in the applicant’s name     Monthly mortgage or rental payments
     Commissions                      Assets held in RRSPs, RRIFs                   Monthly property taxes [if applicable]
     Self-employed earnings           Non-registered investments                    Outstanding loans - fixed monthly payment
                                                                                    Credit card payments - minimum monthly payment
                                                                                    Lines of credit - monthly payment based on outstanding balance
                                                                                    Lease payments - fixed monthly payment
                                                                                    Unpaid income taxes - CRA approved monthly payments
                                                                                    Alimony/child support - fixed monthly payment

In addition to confirming your client’s income and net worth, the following three questions may help to determine if your client
is likely to qualify for an RRSP loan:
     1.    Has your client ever been approved for a loan before – car, RRSP, line of credit, other?
     2.    Does your client make monthly bill and credit card payments on time?
     3.    Does your client usually have money left over after meeting monthly expenses and debt obligations?
If your client answers “No” to one or more of these questions, it is important to properly manage their expectations of actually
being approved for the RRSP loan.

Guidelines to consider
•    The applicant’s monthly debt payments should be less than 40% of their gross monthly income.
                       Monthly debt (including proposed new loan payment)
                                                                                  = Total Debt Service Ratio (TDSR)
                                  Gross monthly income
•    The applicant’s tangible net worth should be at least equal to the loan amount requested.
•    The applicant’s credit history must show that all obligations are up-to-date and paid as agreed.

•    Each time you submit an RRSP loan application, a credit bureau inquiry is done on your client. Should you need to
     cancel and resubmit an application, due to changes to the amount or other information, a new credit bureau inquiry
     may be done. Multiple credit bureau inquiries can negatively impact your client’s credit score. Therefore it is important
     to verify all the details of the RRSP loan application and obtain the client’s signature/authorization prior to submitting
     the RRSP loan application.
•    There is no way to ascertain a client’s likelihood of loan approval without some form of a credit bureau inquiry, although
     a review of the net worth and Total Debt Service Ratio (TDSR) are good indicators.

For Advisor Information Only

Applying for an RRSP loan

STEP 1.     Accessing forms                                            STEP 4.      Investments instructions
Access the B2B Trust RRSP loan application by contacting               Complete and forward to your Head Office the appropriate investment
Northwest Mutual Funds Head Office. Upon request, RRSP                 instructions form (for fund allocation).
loan applications will be mailed to you within 24 hours.
                                                                       STEP 5.      RRSP loan documentation and proof of income requirements
STEP 2.     Application process
                                                                               D O C U M E N TAT I O N                             REQUIRED
                                                                       • Original, completed, signed B2B Trust
                                                                                                                     • For all RRSP loan applications
                                                                        RRSP loan application
           Advisor and client COMPLETE and SIGN
                                                                       • Pre-qualified RRSP loan request             • If applicable (The Paper Way only)
          all sections of the RRSP loan application.
                                                                       • Void cheque from a personal account • For all RRSP loan applications
                                                                                                                     • If paying out another financial
                                                                       • Letter of Direction
                                                                       • Proof of assets                             • Upon request

    Advisor SENDS the original RRSP loan application                                                 PROOF OF INCOME
        and supporting documents to B2B Trust.                         Salaried income
                                                                        • Recent pay stub or
                                                                           most recent T4
                                                                       Commission-based income                        • For RRSP loans amounts greater
                                                                        • Two years Notice of                         than $19,000 or loans with a term
                                                                           Assessment                                 longer than 2 years.
                                                                       Self-employed income
       B2B Trust REVIEWS the RRSP loan application                      • Two years Notice of Assessment
       and CONFIRMS the credit decision by fax or by                       and Financial Statements
        email to the advisor within one business day.
                                                                       Notes: RRSP loans with 3-10 year terms or RRSP loan amounts exceeding the maximum
                                                                       annual contribution amount require further adjudication. Client identification details and
                                                                       third-party determination information are required for all RRSP loan applications.

STEP 3.     Approval and funding
                                                                       STEP 6.      Mailing instructions
                                                                       Avoid lengthy processing and funding delays by sending the original,
Approval and funding: Once the RRSP loan is credit approved and
                                                                       signed RRSP loan application and required supporting documents by
the original RRSP loan application and supporting documents have
                                                                       courier directly to:
been received and verified by B2B Trust, funding occurs within
one business day*. The RRSP loan proceeds will be forwarded to         B2B Trust, Loan Product Group, 130 Adelaide St. W., Suite 404,
Northwest Mutual Funds to be deposited into the borrower’s RRSP        Toronto, ON M5H 3P5.
account. A welcome letter including the cost of borrowing disclosure
is mailed to the borrower from B2B Trust.

*RRSP loans approved after 3 p.m. (E.T.) may require additional
processing time for funding.

Under review or pending: Notification for additional required
information is sent by email or by fax to the advisor within
one business day of status notification.

Decline: Notification informing of the loan decline is sent to the
advisor by email or by fax within one business day of submitting
the RRSP loan application for credit review.                                                Questions?
                                                                                Contact B2B Trust Client Services at

For Advisor Information Only

Frequently asked questions

Q: How long does it take to fund the RRSP loan?
Our service standards are to fund a loan within one business day of receiving original, completed and signed documentation.
We know how important it is to you and your clients that funding is done quickly, which makes it all the more important to
ensure that all required documents are sent to B2B Trust by courier as soon as possible.

Q: Will I receive status information for each RRSP loan application?
We keep you up to date by fax every step of the way to ensure that you have all the information you need should your client
inquire about the status of their loan.

Q: How can I get more information when a client is declined for an RRSP loan?
Privacy laws preclude B2B Trust from providing an applicant’s full credit history. We are happy to discuss these situations
with you to the degree possible. You are invited to contact the B2B Trust Client Service Team at 1.800.263.8349 should you
require more information.

  About B2B Trust
 An Industry Leader                                                                                Dedicated to Advisors
 •      B2B Trust is the leading Canadian supplier of                                              •      At B2B Trust, we do not offer products directly
        third-party investment and RRSP lending.                                                          to the public.
 •      We provide credit expertise and superior lending                                           •      We do not manufacture mutual funds or
        solutions to over 15,000 financial advisors.                                                      segregated funds.
 •      B2B Trust is a federally chartered trust company                                           •      We do not solicit your customers, provide investment
        and a wholly-owned subsidiary of Laurentian Bank                                                  advice or present competitive offerings.
        of Canada.

 Extensive Credit Experience                                                                       We are here to support you and your
                                                                                                   business. For more information,
 •      B2B Trust has over 20 years of investment lending
        experience with a portfolio in the billions.
                                                                                                   call us at 1.800.263.8349.


B2B Trust is not affiliated with Northwest Mutual Funds Inc. and does not endorse or promote the investment products offered by Northwest Mutual Funds Inc. B2B Trust is a wholly-owned
subsidiary of Laurentian Bank of Canada. B2B Trust does not provide investment advice to individuals or advisors. The dealer and advisor, not B2B Trust, are responsible for determining the
suitability of investments for their clients and for informing them of the risks that may be associated with borrowing to invest. B2B Trust acts solely in the capacity of lender and loan account
administrator. Any loan approval by B2B Trust should not be construed as an endorsement of any investment choice, program or strategy. All loans are subject to credit approval and borrowed
                                                                                                                                                                                                     Northwest Mutual Funds RRSP loan highlights (07/10) E

monies are due and payable regardless of the performance of the investments purchased. B2B Trust reserves the right to request additional information or documentation at its sole discretion. The
B2B Trust RRSP Loan Program is available exclusively through licenced financial advisors. This document is for advisor information only.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Investors should read the prospectus before investing. Mutual funds are
not guaranteed. Unit values change frequently and past performance may not be repeated.

For Advisor Information Only

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