Margin Loans Secured against shares?

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by Bendigus, 24th Dec, 2018.

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  1. Bendigus

    Bendigus Well-Known Member

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    Is it possible to secure a loan for a deposit against shares? What is this called. What kind of professional would assist in this process. Is this something that mortgage brokers do?

    Would this count as a special type of Margin loan. From what I can tell MLs are usually used to purchase shares.

    I'm curious as to if you can effectively get a loan for the equity within a shareportfolio. As an alternative to selling shares to make a deposit.
     
  2. tobe

    tobe Well-Known Member

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    Margin loan. Stock broker or banker. Perhaps a financial planner.

    They might not be happy with the purpose, but margin loans are usually drawn as a line of credit, so it’d be simple to use it for a deposit.

    The home loan provider might also have issues with a borrowed deposit. Many preclude it entirely.
     
    Last edited: 24th Dec, 2018
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