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Call us: 800-454-9272

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Collateral Lending

Unlock the value of your investment portfolio

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

  • Tax planning

  • Refinancing high-interest-rate debt or credit cards

See below for additional details on Collateral Lending Program risks and advantages.

Benefits of the program

  • Liquidity

    Your loan will use your portfolio as collateral, without requiring you to sell your positions. 

  • Low rates and cost

    Both variable and fixed-rate loans are typically lower than traditional banking products and have no origination or underwriting fees.

  • Quick decisions

    Digital application process and streamlined underwriting.3

  • Simplicity

    Less documentation is required compared with traditional lending products. 

How the Collateral Lending Program works

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.

Lines of credit and pricing

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

Base rate

$100,000 - $249,999

Base rate

SOFR + 4.10%

$250,000 - $499,999

Base rate

SOFR + 3.10%

$500,000 - $999,999

Base rate

SOFR + 2.60%

$1,000,000 - $2,999,999

Base rate

SOFR + 2.25%

$3,000,000 and above

Base rate

SOFR + 1.60%

Rates are as of 3/10/2022. All information provided on this page is subject to change at any time without notice. Rate based on 1 Month Term SOFR.

How to qualify for the Collateral Lending Program

In order to qualify for a loan or line of credit, you'll need sufficient eligible collateral within your portfolio. This can include: 

  • Marginable equity securities, including ETFs and most mutual funds that must have a value of at least $5 per share and a $300 million-plus market cap 
  • Cash and cash equivalents, such as certificates of deposit 
  • Fixed-income investments, including most investment-grade corporate, Treasury, municipal, and government agency bonds

Additionally, not all securities or account types are eligible to participate in this program, including, but not limited to, retirement accounts. Eligible account types include individual and joint accounts, family offices and related structures, and personal holding structures, such as corporations, LLCs, LPs, and Trusts. For-profit operating entities and not-for-profit accounts are not eligible.

Additional program conditions

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.

  • Borrowing with securities as collateral involves certain risks and is not suitable for everyone 
  • All collateral pledged for your loan or line of credit must be held in a separate cash or non-margin account.* Within this pledged account, your assets may not be withdrawn without lender approval. Additionally, with this account you cannot participate in options trading (for example, spreads and covered call writing), have margin capability, or have any payment features, such as check-writing.
  • Your loan will require you to make minimum monthly payments by a specified due date, until the loan is satisfied
  • Your credit score will be pulled and must meet a minimum requirement for approval. Please be aware that the credit inquiry may impact your credit score.
  • If the value of your pledged securities declines, you may be required to deposit additional funds or securities
  • The loan can be called at any time, without notice, and some or all of your securities can be sold to meet the call, which may result in tax consequences for you

Get started

Learn how you can enjoy the flexibility of meeting today's cash flow needs, without compromising your future investing goals.

Open a new account or existing clients, call 800-669-3900

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

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