For households in higher tax states, particularly in parts of the Northeast, the current environment presents a notable opportunity. Home values across many Northeastern markets have remained relatively firm, while certain lower tax states are offering more attractive entry points than were available 12 to 24 months ago. When combined with somewhat lower interest rates, this may be a practical time to evaluate whether a change in primary residence supports your broader long-term tax and estate strategy.
A move is rarely just a real estate transaction. It can have meaningful implications for tax planning, estate structure, liquidity, and overall lifestyle. For that reason, any potential relocation should be evaluated within the context of a coordinated financial plan. If you have delayed exploring a move in recent years, the current market backdrop may warrant revisiting the discussion to determine whether a change aligns with your long-term objectives.
Pledged Asset Lines and Margin
For clients navigating real estate transactions, liquidity timing can be just as important as interest rates. A pledged asset line (PAL) or margin access through a brokerage custodian can provide short-term bridge financing by allowing investors to borrow against their portfolio without triggering capital gains from asset sales.
These loans are generally structured as non-purpose, interest-only lines and can be useful for real estate closings or down payments prior to the sale of an existing property. When used thoughtfully, they can provide flexibility while preserving long-term market exposure and overall tax efficiency.
Your Custodian Could Be a Mortgage Resource
In addition to securities-based lending, many brokerage custodians offer mortgage solutions through affiliated banks or third-party partnerships. These programs are often designed for investor households and may provide pricing benefits or underwriting flexibility based on the client’s asset base.
For example, Schwab Bank, in collaboration with Rocket Mortgage, provides access to a mortgage team experienced in working with investor households and more complex financial situations. The program may offer rate discounts of approximately 0.25% to 1.00%, depending on assets held with the custodian, at no additional cost.
This team is structured to support high net worth and ultra-high net worth clients and can often qualify borrowers using investment assets rather than relying solely on W-2 income. For individuals with multiple income streams, partnership distributions, or concentrated holdings, this can make the underwriting process more streamlined.
While Schwab’s program is one example, similar mortgage resources and lending services may be available through other custodians, including firms such as Fidelity, depending on the client relationship and asset levels.
If you have questions about your current mortgage or would like to explore lending options available through your custodian relationship, our team can help facilitate that discussion.
