Investing

Borrowing money after HELOC is maxed out

  • Last Updated:
  • Jul 19th, 2020 8:49 pm
[OP]
Sr. Member
Dec 26, 2019
726 posts
1254 upvotes

Borrowing money after HELOC is maxed out

Does anyone have experience borrowing money after they’ve maxed out their HELOC?

I’ve been borrowing to invest and I’m looking to get access to as much money as possible. I’m not looking to discuss the risks of leveraged investing. I’m fully aware of and comfortable with my approach.

Are banks or credit unions are ever willing to lend more money if you’re able to show that you have the income and assets to be able to pay off the interest and pay down the principle over time. Is there ever room for negotiation or flexibility?

My only requirement is having a low interest rate (3% or lower). I’d be flexible with open or fixed term.

Thanks

I should have posted this in the general Finance forum, not the Investing forum. My bad
Last edited by reversi on Jul 19th, 2020 5:44 pm, edited 1 time in total.
4 replies
Member
Jun 6, 2017
220 posts
379 upvotes
Your HELOC limit is tied to the value of the collateral (house). If your house has increased in value you could ask the bank for an increase up to 80%/65% rules.
If your asking if a bank will loan you more money (unsecured) if you can prove your able to pay it off, the answer is of course yes. Some people suggest getting 3to1 investment loans but i'm not sure of how easy they are to get.

3% interest is very unlikely for anything but secured loans though, you could try interactive brokers margin lending (<2%) if your willing to accept the risks of borrowing on margin. Not commenting on the relative risk/merits of these approaches though.
[OP]
Sr. Member
Dec 26, 2019
726 posts
1254 upvotes
Thanks Allan.

I just set up my HELOC in March, so unfortunately that's an option. I'll revisit that option in the future. I've looked into borrowing from my broker, but I don't want the risk of being margin called looming over me. I'll investigate more as a last resort, but probably won't go down that path.

The 3 to 1 investments loans are new to me. I'll have to do some reading.

Thanks for the info and suggestions.
Deal Guru
User avatar
Sep 21, 2007
11372 posts
9699 upvotes
Winnipeg
Your bank wouldn't let you open up a new personal loan or new LOC?
"An essential aspect of creativity is not being afraid to fail." -- Edward Land
Member
Feb 4, 2006
236 posts
58 upvotes
Victoria, BC
You can get an investment loan. 100% (no upfront), 1:1, 2:1, 3:1 investment loans are option. But some restrict what you can invest in, as you are pledging that as collateral.

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