3 ms·
1. Citation needed - which jurisdictions? This is certainly not true in the USA where you can use home equity for investment purposes multiple ways via HELOC, e
by oarabbus_ 4y ago
1. Citation needed - which jurisdictions? This is certainly not true in the USA where you can use home equity for investment purposes multiple ways via HELOC, equity loan, or cash-out refi. Additionally, brokerages themselves offer margin, and margin investing/trading is a loan.
2. This doesn't address the point of where the coercion was involved to make this "exploitation".
[0] https://www.lendingtree.com/home/home-equity/home-equity-investment/#:~:text=Yes%2C%20you%20can%20use%20your,a%20variety%20of%20financial%20uses https://www.lendingtree.com/home/home-equity/home-equity-inv....
[1]https://www.thebalance.com/can-i-invest-in-stocks-with-a-home-equity-loan-5324194 https://www.thebalance.com/can-i-invest-in-stocks-with-a-hom...
- dahdum 4y agoNon-purpose loans like SBLOC aren't allowed to be used to purchase or carry securities. I believe HELOC usually don't carry that restriction, so it would be legal. Probably a terrible idea, but legal.