Equitable Bank expands CSV lending program

by Leo Almazora01 Mar 2021

Equitable Bank has broadened its Cash Surrender Value (CSV) Line of Credit program through a new collaboration with Sun Life.

Under the new arrangement, qualified Canadians who have whole life policies with Sun Life can access an alternative source of liquidity through an Equitable Bank CSV Line of Credit.

“By expanding our CSV offerings through Sun Life, we're able to meet the needs of more Canadians who are looking for unique ways to pursue more of life's opportunities,” said Mahima Poddar, group head and senior vice president of Personal Banking at Equitable Bank.

Rather than selling investments or tapping other liquid assets, Sun Life policyholders may choose to avail of the bank’s CSV FLEX Line of Credit or the CSV MAX Line of Credit facility, depending on their specific circumstances and professional financial advice they may receive.

Both credit facilities offer access to tax-free cash as the policy continues to grow. Monthly interest payments are required specifically for the CSV MAX product; the CSV FLEX product, which comes with no need for interest payments, are open to borrowers on a case-to-case basis.

“At Sun Life, we've been helping Canadians plan their financial futures for over 155 years,” said Dean Chambers, vice-president, Insurance Management, Sun Life. “We are excited to collaborate with Equitable Bank – sharing our passion to bring Canadians choice and flexibility in insurance.”

Because the Equitable Bank CSV Line of Credit suite is a demand credit facility, Equitable Bank can demand partial or full payment of the outstanding balance at any point in time. Users must ensure their outstanding loan balance remains below 95% of their policy’s cash surrender value.