One genius way to beat the mortgage rates right now is using your stock portfolio and investments called a PCL investment. Your financial planner will know more about your financial situation. Often the bank you have your investments can provide you with a quote for a home loan. Securities-based lending (SBL) is a financial strategy where borrowers use their investment portfolio, such as stocks, bonds, or mutual funds, as collateral to secure a loan. While SBL can provide liquidity without the need to sell investments, it’s important to understand the implications and risks involved:

1. Potential for lower interest rates: SBL loans may offer lower interest rates compared to traditional mortgages because they are collateralized by investment assets. The interest rate is often tied to an index, such as LIBOR, and can vary depending on the lender and the specific terms of the loan.

2. Flexibility in loan terms: SBL loans may offer more flexibility in terms of repayment schedules and loan structures. Borrowers can often choose interest-only payments or customized repayment plans based on their financial situation.

3. Preservation of investment portfolio: By using an SBL loan, borrowers can retain ownership of their investment portfolio while accessing funds for other purposes, such as purchasing a home. This can be beneficial if the investments are expected to generate higher returns over time.

4. Potential risks: It’s important to consider the risks associated with SBL. If the value of the collateralized investments declines significantly, borrowers may be required to provide additional collateral or repay the loan in full. Failure to meet the terms of the loan agreement could result in the lender liquidating the investments to recover their funds.

5. Eligibility and qualification: SBL loans are typically available to individuals with substantial investment portfolios. Lenders consider factors such as the value and liquidity of the investments, the borrower’s creditworthiness, and their ability to meet the loan obligations.

6. Consider professional advice: Given the complexities and risks involved with securities-based lending, it’s highly recommended to consult with a financial advisor or wealth management professional who specializes in this area. They can help evaluate your specific situation, explain the terms and risks associated with SBL, and guide you in making an informed decision.

It’s important to conduct thorough research, review loan terms carefully, and consider your financial goals and risk tolerance before pursuing securities-based lending as a strategy for obtaining a mortgage loan. If you don't have a financial planner, check with your checking and savings banker in the branch. They can set you up with a consultation like I did with Wells Fargo.