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Securities-Backed Loan vs. Mortgage Calculator

Compare buying with an SBL — no down payment, portfolio stays fully invested — against a traditional mortgage. See which path leaves you wealthier after capital gains tax, compounding, and interest costs.

Quick answer: Screen a fully funded securities-backed loan against a mortgage after collateral capacity, interest, realized-gain tax, modeled closing costs, and portfolio growth. Enter Home Purchase Price, Holding Period, Portfolio Value, and Entered Annual Portfolio Return Scenario to personalize the estimate. It returns Capital Gains Tax on Down Payment, Max SBL Available, and SBL Covers Purchase so you can compare the impact before choosing a next step. Use it to compare payment, equity, rate, and timing tradeoffs before applying or changing a loan.

Capital Gains Tax on Down Payment
$60,000
Capital Gains Tax on Down Payment
$60,000
Max SBL Available
$1,950,000
SBL Covers Purchase
No
Down Payment Amount
$400,000
Capacity screen — no winner calculated
$50,000 funding shortfall

The entered SBL capacity does not fund the full purchase, so a wealth comparison would not be apples to apples.

Maximum modeled SBL$1,950,000—
Home purchase price$2,000,000—

Your portfolio only supports $1.95M in SBL borrowing — $50K short of the purchase price. Consider a larger portfolio, higher advance rate asset mix, or a hybrid approach.

Mortgage Loan Amount
$1,600,000
Embedded Gain
60.00%
SBL Monthly Interest
$10,563
Mortgage Monthly P&I
$10,346
SBL LTV Ratio
65.00%
Collateral Value at Entered Maximum LTV
$3,000,000
Signed Collateral Buffer to Entered Maximum LTV
0.00%
Diagnostic

Entered SBL capacity is $1,950,000; the simplified entered-rate tax scenario on securities sold for the mortgage down payment is $60,000.

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What to do next

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Your action plan
  1. 1

    Compare the leading option against your current setup

    Screen a fully funded securities-backed loan against a mortgage after collateral capacity, interest, realized-gain tax, modeled closing costs, and portfolio growth.

  2. 2

    Compare the result against current market-rate options

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

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About mortgage rates

Mortgage rates depend on loan type (30-yr fixed, 15-yr fixed, ARM, FHA, VA, jumbo), your credit score, down payment, points paid, loan amount, property state, and whether you're purchasing or refinancing. The calculator above uses a representative market rate for payment estimates — your actual rate will vary.

For a personalized rate comparison, use the tool below to see lenders ranked by APR, loan type, and your profile.

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Mortgage rates shown on SwitchWize compare pages include loan type, assumed FICO, LTV, and points. Representative only — verify all terms directly with the lender. Advertising disclosure

Frequently Asked Questions

Everything you need to know.

What is a Securities-Backed Loan (SBL)?
An SBL — also called a pledged asset line or portfolio line of credit — lets you borrow against your brokerage portfolio without selling it. You pledge your stocks, bonds, or funds as collateral and receive a loan at a rate typically 1.5–2.5% above SOFR. The portfolio stays invested and continues compounding.
What is the advance rate on an SBL?
The advance rate is the maximum percentage of your portfolio value you can borrow. Diversified equity portfolios: 50–70%. Balanced 60/40 portfolios: 65–75%. Bond-heavy portfolios: 70–85%. Concentrated single-stock positions: 30–50%. The lower the advance rate, the larger the buffer before a maintenance call.
What is a maintenance call?
If your portfolio value drops enough that the outstanding loan exceeds the advance rate applied to the new lower value, the lender issues a maintenance call — requiring you to either deposit more cash, add more securities, or repay part of the loan. This typically must be resolved within 24–72 hours.
Is SBL interest tax-deductible?
SBL interest used to purchase or carry investment property may qualify as investment interest expense, deductible on Schedule A (Form 4952). Interest used to purchase a home sits in a gray area — consult a tax advisor. This is a meaningful advantage vs mortgage interest, which requires itemizing.
Who offers securities-backed loans?
Major brokerage custodians including Fidelity (Portfolio Line of Credit), Schwab (Pledged Asset Line), UBS, and Morgan Stanley offer SBLs. Rates and advance rates vary. SoFi and some fintechs offer portfolio-backed loans at more competitive rates for smaller portfolios.
Is the Securities-Backed Loan vs. Mortgage Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Securities-Backed Loan vs. Mortgage Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare sbl lenders, or run Money Map to compare this home & mortgage decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (mortgage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

A HNW buyer with a $3M portfolio and $2M home purchase faces a critical choice: liquidate $400K for a down payment (triggering capital gains tax) or pledge the portfolio as collateral and keep it compounding. The SBL wins when portfolio returns exceed the borrowing rate. The mortgage wins when they don't. This calculator shows exactly where the crossover is.

How to Use It

  1. 1Enter the home price and your portfolio value
  2. 2Set your expected portfolio return — this is the key variable
  3. 3Adjust the SBL advance rate to match your asset mix
  4. 4Review the sensitivity table to see how the winner changes with returns
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