Where to get Investment Interest Only Loans?
Hello,
I am looking to get an investment loan that is interest only but all I can find are ones that require you to invest in mutual funds and are offered from Financial planners. Are there any institutions that will offer interest only loans to invest outside of mutual funds?
I want to pay off the margin I have at my brokerage and replace it with the investment loan.
If you have sufficient equity, most banks will offer interest-only investment loans. You usually get a better rate if you own a home, especially if it's paid off. Best thing would be to talk to your bank.
Most LOCs meet this criteria. Some of them have minimum monthly payments in excess of the interest, but generally you're free to withdraw it again immediately as long as you're below your limit.
Can't you just get a leverage account for this? Excuse my ignorance if I'm wrong - I don't have one myself.
What brokerage are you at? I can't imagine wanting to pay off my margin and replace it with a loan. Interactive brokers only charges ~2.5% on CAD and 1.65% on USD - hard to beat.
Questrade. They just increased their margin rates. I am not active enough for IB, even though I have 50K+ of margin being used right now.Originally Posted by oedema
Questrade charges 6%, so thats $250 a month on $50k of margin. IB would be about $105 a month. You're not going to find anything cheaper than them. Maybe you should switch and save almost $150 a month - their $10/mo minimum monthly fee pales in comparison.
single stock futures ( one chicago)
You can try calling Questrade and threatening to move if they don't reduce your margin rate.
What do you mean not active enough for IB? They have minimum commission of $10/month, but the savings in margin costs would easily cover that.
If by "leverage" you mean margin, then yes. Some choose a loan instead of margin as they want to guarantee a drop in the the market won't result in a margin call.
Cheers
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