Securities-Based Lending
Securities-based lending uses investment portfolios as collateral for property financing, offering higher combined leverage and preserving investment positions while accessing capital for real estate acquisition.
| Eligible Securities | LTV on Securities |
| Blue-chip stocks | 60-70% |
| Government bonds | 80-90% |
| Corporate bonds | 60-75% |
| Mutual funds | 50-60% |
| Total portfolio | 60-70% blended |
| Leverage Example | Structure |
| Property value | AED 3,000,000 |
| Securities portfolio | AED 2,000,000 |
| Property LTV (70%) | AED 2,100,000 |
| Securities LTV (60%) | AED 1,200,000 |
| Total leverage | AED 3,300,000 (110% of property) |
| Cash down payment | AED 0 (fully leveraged) |
| Risk Factors | Exposure |
| Market volatility | Margin calls possible |
| Forced liquidation | Security sale at unfavorable prices |
| Double leverage | Property and securities both borrowed |
| Interest costs | Higher due to complexity |
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