In short…
A wealth-backed loan finances an investment — property, SCPI units, financial assets — by drawing 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 investment’s return exceeds the cost of the loan. The simulator works out your monthly payment and the total cost of the financing.
- Leverage: invest more than your immediately available savings
- Interest often deductible, depending on the nature of the investment financed
- Wealth-backed: bespoke structuring — repayment, interest-only or Lombard to suit the objective
Simulate your wealth-backed loan
The simulator works out the monthly payment and the total cost. Your data is neither stored nor transmitted.
Wealth-backed loan simulator
Work out the cost of a wealth-backed loan designed to finance an investment through leverage.
Results are provided for purely illustrative and educational purposes, based on the parameters you enter and simplified assumptions (2026 taxation, constant return, excluding inflation). They constitute neither personalised investment advice, nor tax advice, nor an offer to subscribe. Some investments carry a risk of capital loss. Before any decision, speak with an advisor.
Why credit is the most underrated wealth accelerator
The common-sense reflex is to invest only what you own. That is precisely what caps most estates: limited to your available savings, your pace of wealth-building tracks the pace of your income, and nothing more. The wealth-backed loan breaks this ceiling. It lets you deploy today a capital larger than your immediate savings, and so put your investments to work far 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 the loan, leverage creates value. You borrow at a given rate a capital that earns more, and the differential accrues to you, amplified by the amount borrowed. This is how structured estates are built — not by accumulating savings alone, but by deploying credit intelligently.
But a wealth-backed loan is not a standard product: it is a structuring exercise. Depending on the nature of the investment, your taxation and your horizon, it takes the form of a classic repayment loan, an interest-only loan to maximise deductibility and preserve capital, or a Lombard loan to mobilise a portfolio without selling it. The same project financed three ways produces three distinct wealth outcomes.
The levers the wealth-backed loan opens
Invest more than your available savings
A loan backed by your wealth lets you deploy a capital larger than your immediate savings, drawing on the strength of your existing assets rather than on your income alone. You thereby accelerate wealth-building without waiting to have saved the full amount. As long as the financed investment earns more than the cost of the loan, this leverage creates value — it is the engine of ambitious wealth strategies, out of reach of a classic income-based financing.
Deductibility according to the investment financed
Depending on the nature of the investment — buy-to-let property, SCPI units, financial assets — the loan’s interest is often deductible, which cuts the net cost of the financing. This deductibility, set against your marginal tax bracket, can transform the arrangement’s economics. That is precisely what makes the choice of structure decisive: the same investment financed as a repayment or an interest-only loan does not offer the same tax efficiency.
The choice of structure, the most decisive decision
Repayment, interest-only or Lombard: the right arrangement depends on the taxation of the financed investment, your marginal bracket, your horizon and your existing wealth. The repayment loan secures and deleverages; interest-only maximises deductibility and preserves capital; the Lombard loan mobilises a portfolio without selling it or triggering tax. Choosing the structure before borrowing is exactly what a bank counter never does — it offers its standard loan, not the arrangement suited to your strategy.
Worked example — Vincent, 49, company director in Bordeaux
Vincent has €100,000 in savings and wants to invest in an SCPI portfolio of €300,000 targeting a 5% return. Rather than commit all his savings, he finances the operation with a €300,000 repayment wealth-backed loan over 20 years at 3.5%. Here is the simulator’s reading:
| Indicator | No loan (€100,000 invested) | Wealth-backed loan (€300,000) | Reading |
|---|---|---|---|
| Capital invested | ≈ €100,000 | ≈ €300,000 | leverage ×3 |
| Monthly payment (insurance included) | — | ≈ €1,815 | partly covered by the rents |
| Total cost of the loan | — | ≈ €138,000 | interest + insurance over 20 years |
| Gross annual SCPI return | ≈ €5,000 | ≈ €15,000 | to weigh against the loan cost |
Illustrative figures — rounded for clarity and not contractual. Run the simulator above for your exact numbers.
By financing on credit, Vincent puts €300,000 to work instead of €100,000. As long as the SCPI return (5%) exceeds the net cost of the loan, the differential works for him on the entire borrowed capital, not just on his savings. This is leverage in all its simplicity.
The choice of structure remains open: a repayment loan to secure and deleverage, interest-only to maximise deductibility if he holds property income to erase, or Lombard if he prefers to back the operation against an existing portfolio. That choice, and not the rate alone, will determine the real efficiency of the arrangement.
Leverage in the service of wealth
Borrowing to invest lets you deploy a capital larger than your immediate savings, and so accelerate wealth-building — provided the investment’s return exceeds the cost of the loan. This is the principle of leverage, a pillar of wealth strategy.
Depending on the objective, the wealth-backed loan takes the form of a classic repayment loan, an interest-only loan (to maximise deductibility and preserve capital) or a Lombard loan (to mobilise a portfolio without selling it).
Structure before you borrow
The right arrangement depends on the taxation of the financed investment, your marginal bracket, your horizon and your existing wealth. The same project can be financed in several ways, with very different tax and wealth consequences.
This is precisely the role of wealth advice: choosing the type of loan, the term, the guarantee and how it fits your existing wrappers so that leverage serves your overall strategy rather than weighing it down.
Structure before you borrow
This simulator prices the monthly payment and the total cost of a wealth-backed loan. The value is created upstream, in the choice of structure: repayment, interest-only 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 bracket, your horizon and your existing wealth — it is a strategy decision, not a product to take at the counter.
Balmont Conseil is an independent wealth-management firm, a member of ANACOFI, with no capital ties to any bank. That independence lets us choose the type of loan, the term, the guarantee and how it fits your existing wrappers so that leverage serves your overall strategy, in your sole interest. Book a call to structure your financing before you contract it.
Frequently asked questions
What is a wealth-backed loan?
It is a financing backed by the strength of your wealth rather than your income alone, designed to invest — property, SCPI units, financial assets. It puts leverage to work in building or optimising your wealth: you deploy a capital larger than your immediate savings, and as long as the investment earns more than the cost of the loan, leverage creates value. It is a bespoke structuring exercise, not a standard loan.
How does leverage work?
Borrowing to invest lets you put to work a capital larger than your immediate savings. As long as the return on the financed investment exceeds the cost of the loan, the differential accrues to you — amplified by the amount borrowed rather than limited to your own contribution. It is the pillar of ambitious wealth strategies. The symmetric risk exists: if the return falls below the cost of the loan, leverage works against you. Sizing is therefore essential.
Repayment, interest-only or Lombard: how to choose?
The right arrangement depends on the taxation of the financed investment, your marginal bracket, your horizon and your existing wealth. The repayment loan secures and gradually deleverages; interest-only maximises the deductibility of interest and preserves the invested capital; the Lombard loan mobilises a portfolio without selling it or triggering tax. The same project financed across these three structures produces very different net results: it is the central trade-off of 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. The interest on a loan for a buy-to-let investment or SCPI units is generally deductible from property income, which cuts the net cost of the financing. This deductibility, set against your marginal bracket, can transform the arrangement’s balance — and that is precisely what makes the choice of loan structure decisive.
Results are provided for purely illustrative and educational purposes, based on the parameters you enter and simplified assumptions (2026 taxation, constant return, excluding inflation). They constitute neither personalised investment advice, nor tax advice, nor an offer to subscribe. Some investments carry a risk of capital loss. Before any decision, speak with an advisor.