Our Collateral Lending Program, underwritten by TD Bank, offers a convenient way to finance almost any need - without having to liquidate your security holdings. If your account is eligible, your existing portfolio can be used to finance a variety of goals and needs.1 These may include:
Short-term cash flow gaps
Business expenses, including day-to-day or longer-term capital expenditures, or interest in a business partnership
Education expenses and other memorable life events2
Real estate and luxury purchases
Liquidity for estate planning
Refinancing high-interest-rate debt or credit cards
See below for additional details on Collateral Lending Program risks and advantages.
You can choose from a secured line of credit or a fixed-rate loan. A line of credit gives you the most flexibility by allowing you to tap the line as needed, while a fixed-rate loan offers the predictability of a lump-sum funding amount with a stated term and regular payments. Both types of loans cannot be used to purchase additional securities, carry or trade securities, or repay debt incurred to purchase, carry, or trade securities.
Credit lines are available based on the value of your eligible and pledged securities. The amount borrowed is typically between 50% and 70% of a client's diversified investment account portfolio.
|Credit line amount||
|$150,000 - $249,999||
30-Day LIBOR + 4.00%
|$250,000 - $499,999||
30-Day LIBOR + 3.00%
|$500,000 - $999,999||
30-Day LIBOR + 2.50%
|$1,000,000 - $2,999,999||
30-Day LIBOR + 2.15%
|$3,000,000 and above||
30-Day LIBOR + 1.50%
In order to qualify for a loan or line of credit, you'll need sufficient eligible collateral within your portfolio. This can include:
Here are some additional details and conditions to consider as you decide if this type of loan or line of credit may be right for you.