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Wealth-backed loan simulator: financing an investment through leverage
A wealth-backed loan finances an investment — property, SCPI units, financial investments — by relying on the strength of your wealth rather than on your income alone. Well structured, it puts leverage to work in building or optimising your wealth, provided the return on the investment exceeds the cost of the loan.
Invest capital greater than your immediately available savings
Depending on the nature of the investment financed
Bespoke structuring: amortising, bullet or Lombard depending on the objective
The simulator
Simulate your wealth-backed loan
The simulator calculates the monthly payment and the total cost. Your data is neither stored nor transmitted.
Wealth-backed loan simulator
Calculate the cost of a wealth-backed loan used to finance an investment through leverage.
Indicative calculation, based on 2026 rules and the assumptions entered above.
Why
Why credit is the most underestimated wealth accelerator
The common-sense reflex is to invest only what you own. That is precisely what caps most fortunes: limited to your available savings, the pace at which you build wealth follows the pace of your income, and nothing more. A wealth-backed loan breaks through that ceiling. It lets you deploy more capital today than your immediate savings, and so put your investments to work much sooner — that is the whole principle of leverage.
The rule is simple and demanding: as long as the return on the financed investment exceeds the cost of credit, leverage creates value. You borrow capital at a given rate that yields a higher return, and the difference is returned to you, amplified by the amount borrowed. This is how structured wealth is built—not through the accumulation of savings alone, but through the intelligent deployment of credit.
But a wealth-backed loan is not a standard product: it is a structuring exercise. Depending on the nature of the investment, your tax position and your horizon, it takes the form of a conventional amortising loan, a bullet loan to maximise deductibility and preserve capital, or a Lombard loan to draw on a portfolio without selling it. The same project financed in three ways produces three different wealth outcomes.
What the calculation shows
The levers a wealth-backed loan opens up
A wealth-backed loan lets you deploy more capital than your immediate savings, relying on the strength of your existing assets rather than on your income alone. You thus speed up wealth building without waiting until you have saved the full amount. As long as the financed investment earns more than the cost of the loan, this lever creates value — it is the engine of ambitious wealth strategies, out of reach of conventional income-based financing.
Depending on the nature of the investment — rental property, SCPI units, financial investments — loan interest is often deductible, which reduces the net cost of financing. This deductibility, combined with your marginal tax rate, can transform the economics of the arrangement. That is precisely what makes the choice of structure decisive: the same investment financed with an amortising or a bullet loan does not deliver the same tax efficiency.
Amortising, bullet or Lombard: the right arrangement depends on the taxation of the financed investment, your marginal tax rate, your horizon and your existing wealth. An amortising loan secures and reduces debt; a bullet loan maximises deductibility and preserves capital; a Lombard loan draws on a portfolio without selling it or triggering tax. Choosing the structure before borrowing is what a bank branch never does — it offers its standard loan, not the arrangement suited to your strategy.
Case study
Case study: Vincent, 49, business owner in Bordeaux
Vincent has €100,000 in savings and wants to invest in a €300,000 SCPI portfolio targeting a 5% yield. Rather than tying up all his savings, he finances the operation with a €300,000 amortising wealth-backed loan over 20 years at 3.5%. Here is how the simulator reads it:
| Indicator | Without a loan (€100,000 invested) | Wealth-backed loan (€300,000) | What it means |
|---|---|---|---|
| Capital invested | ≈ €100,000 | ≈ €300,000 | leverage ×3 |
| Monthly repayment (insurance included) | — | ≈ €1,815 | partly covered by rents |
| Total cost of the loan | — | ≈ €138,000 | interest + insurance over 20 years |
| Gross annual SCPI yield | ≈ €5,000 | ≈ €15,000 | to compare with the cost of the loan |
By borrowing, Vincent puts €300,000 to work instead of €100,000. As long as the SCPI yield (5%) exceeds the net cost of the loan, the difference works for him on all the borrowed capital, not just on his savings. That is leverage at its simplest.
The choice of structure remains open: amortising to secure and reduce debt, bullet to maximise deductibility if he has property income to offset, or Lombard if he prefers to back the operation with an existing portfolio. This choice, not the rate alone, will determine how effective the arrangement really is.
In practice
Structure before borrowing
This simulator calculates the monthly payment and total cost of a wealth-backed loan. Value is created upstream, in the choice of structure: amortising, bullet or Lombard, each with very different tax and wealth consequences for the same project. The right arrangement depends on the taxation of the financed investment, your marginal tax rate, your horizon and your existing wealth — it is a strategic decision, not a product picked up over the counter.
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any bank. Open architecture allows us to study the type of loan, the term, the guarantee and how it fits with your existing wrappers so that the leverage serves your overall strategy, then to put you in touch with our partner banks. Let's book an appointment to study your financing before you take it out.
Frequently asked questions
What clients ask us.
What is a wealth-backed loan?
It is financing backed by the strength of your wealth rather than by your income alone, used to invest — property, SCPI units, financial investments. It puts leverage to work in building or optimising your wealth: you deploy more capital than your immediate savings, and as long as the investment earns more than the cost of the loan, leverage creates value. It is bespoke structuring, not a standard loan.
How does leverage work?
Borrowing to invest lets you put more capital to work than your immediate savings. As long as the return on the financed investment exceeds the cost of the loan, the difference comes back to you — amplified by the amount borrowed rather than limited to your own contribution. It is the cornerstone of ambitious wealth strategies. The mirror-image risk exists: if the return falls below the cost of the loan, leverage works against you. Sizing is therefore essential.
Amortising, bullet or Lombard: how to choose?
The right arrangement depends on the taxation of the financed investment, your marginal tax rate, your horizon and your existing wealth. An amortising loan secures and gradually reduces debt; a bullet loan maximises interest deductibility and preserves the capital invested; a Lombard loan draws on a portfolio without selling it or triggering tax. The same project financed under these three structures produces very different net results: this is the central choice in a wealth-backed loan.
Is the interest on a wealth-backed loan deductible?
Often, yes, but it depends on the nature of the investment financed. Interest on a loan for a rental investment or SCPI units is generally deductible from property income, which reduces the net cost of financing. This deductibility, combined with your marginal tax rate, can transform the balance of the arrangement — and that is precisely what makes the choice of loan structure decisive.
How does Balmont Conseil differ from a bank?
Balmont Conseil is a wealth management advisory firm based in Lyon, a member of ANACOFI-CIF, with no capital ties to any bank. A wealth-planning loan takes preparation: we study the type of loan, the term, the guarantee and how it fits with your existing wrappers, then put you in touch with our partner banks. A bank offers its standard loan and in-house product; we study the structure suited to your overall wealth strategy.
