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TD Bank Collateral Lending
Our Collateral Lending Program provides eligible members easy financing for different needs1 without liquidating your security holdings. You can use your existing portfolio to finance things like:
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Short-term cash flow needs
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Long-term or day-to-day business expenses or a business partnership
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Important milestones like education expenses2
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Large purchases including real estate
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Estate planning liquidity
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Tax planning
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Credit card or debt refinancing
To learn more, call us at 1-866-746-6840 or email NMLoanSupport@td.com.
What are the benefits of Collateral Lending?
How does the program work?
Choose your secured lending option:
- Line of credit: Get the flexibility to access funds when you need them
- Fixed-rate loan: Get one lump-sum funding with defined terms and predictable payments
You cannot use these funds to buy additional securities, carry or trade securities, or repay debt incurred to purchase, carry, or trade securities.
Line of credit and rates
Your line of credit is based on the value of your eligible security holdings, generally 50% to 70% of your portfolio.
|
Credit line amount |
Base rate |
|---|---|
|
$100,000 - $249,999 |
SOFR + 3.90% |
|
$250,000 - $499,999 |
SOFR + 2.90% |
|
$500,000 - $999,999 |
SOFR + 2.65% |
|
$1,000,000 - $1,999,999 |
SOFR + 1.85% |
|
$2,000,000+ |
SOFR + 1.60% |
Rates are as of 3/11/2025. All information provided on this page is subject to change at any time without notice. Rate based on 1 Month Term SOFR.
How do I qualify?
Your portfolio should contain enough eligible securities, including:
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Marginable equity securities including most mutual funds and Exchange-Traded funds (ETFs) with a value of at least $5 per share and a $300 million-plus market cap
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Cash and cash equivalents, like certificates of deposit
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Fixed-income investments, including most investment-grade corporate, Treasury, municipal, and government agency bonds
Not all security holdings or account types are eligible to participate.
Eligible accounts:
- Individual and joint accounts
- Family offices and related structures
- Personal holding structures like corporations, LLCs, LPs, and Trusts
Ineligible accounts:
- Retirement accounts
- For-profit operating entities and not-for-profit accounts
What else do I need to know?
Learn more about the details and conditions of our Collateral Lending Program:
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The risk of using your portfolio as collateral is not for everyone – your loan specialist can answer any questions you might have
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Collateral pledged must be held in a separate cash or non-margin account* and cannot be withdrawn without lender approval. You can't use this account to participate in options trading (spreads and covered call writing), have margin capability, or have any payment features, such as check-writing
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Minimum monthly payments are required
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The approval process includes a credit inquiry that may impact your credit score
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Additional funds or securities may be required if your pledged securities value goes down
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The loan can be called at any time, without notice, and some or all of your securities can be sold to meet the call. This may result in tax consequences for you
1Eligible is defined as taxable readily marketable securities traded on a major exchange. Tax-deferred assets are not eligible. Each security will have its own advance rate.
2TD Bank does not offer closed-end consumer loans for the purpose of financing post-secondary education expenses.
3Not all loans will be processed digitally. For loans that are not standard, paper process is still available today.
*For lines of credit over $5 million and loans of any size, full documentation will be requested.
SECURITIES AND INVESTMENTS |
||
NOT FDIC INSURED |
NO BANK GUARANTEE |
MAY LOSE VALUE |
The TD Bank, N.A. Collateral Loan offering is provided by TD Bank, N.A., member FDIC (TD Bank). The TD Bank Collateral Loan offering requires a securities account at an approved custodian or broker dealer, and sufficient eligible collateral to support a credit facility of $100,000.
Securities and other investment services are not a deposit; not FDIC insured; not insured by any federal government agency; not guaranteed by TD Bank, N.A. or any of its affiliates; and, may be subject to investment risk, including possible loss of value.
All securities and accounts are subject to eligibility requirements. Eligible securities are generally taxable readily marketable securities traded on a major exchange. Tax deferred assets are not eligible. All loans and lines of credit are subject to credit approval, verification, and collateral evaluation. Certain restrictions and terms and conditions apply. Each security will have its own advance rate. TD Bank may change its advance notes and collateral maintenance requirements at any time. A complete description of the loan terms can be found in the loan agreement.
Borrowing with securities as collateral involves certain risks and is not suitable for everyone. A complete assessment of your individual circumstances is needed when considering a securities-based loan. If the market value of your pledged securities declines below required levels, you may be required to pay down your loan or line of credit, pledge additional cash or securities in order to maintain it, or TD Bank may require the sale of some or all of the securities in your account to meet a collateral call without prior notice. Clients are not entitled to an extension of time on the collateral call and clients are not entitled to choose which securities or other assets will be sold. You can lose more funds than deposited into the collateral account. The sale of your pledged securities may cause you to suffer adverse tax consequences. You should discuss the tax implications of pledging securities as collateral with your tax advisor. TD Bank, their affiliates and employees do not provide legal or tax advice.
Financing real estate with a securities-based loan or line of credit carries risk and may not be appropriate for your needs. Please read all lines of credit documents carefully. The proceeds from your TD Bank securities-based loans and lines of credit may not be used to purchase additional securities, carry or trade securities, or repay debt incurred to purchase, carry or trade securities. Securities held in a retirement account cannot be used as collateral to obtain a loan. Securities purchased in a pledged account must meet collateral eligibility requirements.
Not all loans will be processed digitally. For loans that are not, a standard paper process is still available today. TD Bank does not offer closed-end consumer loans for the purpose of financing post-secondary education expenses. The TD Bank, N.A. Collateral Loan offering is provided by TD Bank, N.A., member FDIC (TD Bank).
This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.
| TD Bank, N.A. | TD Private Client Wealth LLC |
| Member FDIC | Member FINRA/SIPC |
Member FDIC TD Bank, N.A. | Equal Housing Lender