Jeff is an investment specialist and maintains a significant amount of his assets in long-term investments. He recently discussed purchasing a new home in Los Angeles with his banker, Kendall, and stated that he is not interested in liquidating his investments to purchase a home. To keep his assets invested in the market, Jeff wanted to minimize his down payment and take out the maximum loan size on the property.
Kendall connected Jeff with a Private Bank mortgage specialist, who educated him on the pledged-asset mortgage product. This allowed Jeff to pledge a portion of his investments held with the firm in lieu of a down payment to finance 100% of his home purchase, meaning he did not need to liquidate his investments to purchase the home.
Thrilled with the opportunity to keep the entirety of his portfolio invested and avoid incurring an additional tax burden, Jeff pledged a portion of his investment portfolio against the mortgage and was able to finance 100% of the purchase price with a mortgage.
All case studies are shown for illustrative purposes only and are hypothetical. Any name referenced is fictional and may not be representative of other individual experiences. Information is not a guarantee of future results.
JPMorgan Chase & Co., its affiliates, and employees do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal and accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transaction.
