Can I use shares as security for a home loan?
A share portfolio can boost your serviceability and help you give proof of genuine savings.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
If you've invested in shares, your portfolio could be a handy asset when you apply for a home loan. While lenders may not give you full credit for your share income, your portfolio could help improve your borrowing power. The shares can't count as security or form part of your deposit. But the dividends can count as income when the lender assesses your application.
Share portfolios as genuine savings
During the home loan application process, lenders will assess your income, debt and assets, and how they affect your ability to service the loan.
One factor lenders will look for is proof of genuine savings, such as regular deposits into a savings account. However, they will also take into account any shares you have held for at least three months, so holding a share portfolio in your name can certainly increase your borrowing power.
Need a home loan? Compare now
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.