J.P.

MORGAN

Pledged Asset Mortgage

Finance up to 100% of your property while maintaining your investment strategy.

THE J.P. MORGAN SOPHISTICATED FEATURES

PLEDGED ASSET MORTGAGE With the J.P. Morgan Pledged Asset Mortgage, you can:
Homebuyers with complex balance sheets need intelligent financing
• Finance up to 100% of a residential property’s value by
solutions. The J.P. Morgan Pledged Asset Mortgage allows you to
pledging marketable securities from your J.P. Morgan portfolio
consider your investment strategy and your tax situation, while
refinancing or funding your real estate purchase. • Reduce or eliminate the need for a cash down payment
• Preserve your current investment strategy
KEEP YOUR INVESTMENT STRATEGY IN PLACE
The Pledged Asset Mortgage allows you to pledge assets in your • Maximize your fixed-rate financing
J.P. Morgan portfolio instead of making a traditional cash down • Defer potential capital gains taxes3
payment. With the securities and the home as collateral, you can
• Pledge assets for yourself or a family member
achieve up to 100% financing on the purchase or refinance of your
primary residence, second home or residential investment property.
HOW IT WORKS
Rather than liquidating investments to generate cash for a down Pledged Asset Mortgage/
payment and potentially disrupting your investment strategy or Standard Pledged Investment
triggering capital gains taxes, you remain invested with the potential
Mortgage Securities Portfolio*
to earn dividends, interest and capital appreciation. After you have
pledged marketable securities such as stocks, bonds or mutual funds,
you maintain the flexibility to continue trading or have your portfolio $200K $1MM $330K
rebalanced.1 Your Financial Advisor or Lending Advisor can advise on Cash Down Mortgage Pledged
eligible securities. Investment
$800K Securities
SECURE LONG-TERM, FLEXIBLE FINANCING Mortgage
The Pledged Asset Mortgage allows you to maximize the amount of
financing on your real estate. You may even pledge assets on behalf
of a qualified family member (parent, spouse or child) to help them
purchase residential real estate, without co-signing the loan or
incurring gift taxes.2, 3

AVAILABLE FOR ALL J.P. MORGAN

STANDARD MORTGAGES
Similar to a traditional mortgage, a Pledged Asset Mortgage is 80% LTV 100% LTV
available for all product types (fixed and floating) and all transaction
For illustrative purposes only.
types (purchases, rate & term refinances, and cash-out refinances). Standard mortgage types include:
In addition, there are no extra fees; only standard mortgage fees and Interest Only (IO), Adjustable Rate Mortgage (ARM) and Fixed-Rate.
costs apply. *Not an additional facility.

1
Trading is permitted as long as the securities in the account maintain value above the required minimum pledged asset amount, and the portfolio remains diversified.
2
Borrower must qualify for the full loan amount.
3
JPMorgan Chase & Co. and its subsidiaries do not render accounting, legal or tax advice. Estate planning requires legal assistance. You should consult with your independent
advisors concerning such matters.
PLEDGED ASSET MORTGAGE 2

WHAT TO EXPECT WHEN YOU FINANCE USING A PLEDGED ASSET MORTGAGE

FUNDING THE ACCOUNT MANAGING COLLATERAL
The Pledged Asset Mortgage requires you to commit eligible If the value of the securities in your pledged asset account falls below
securities you own and maintain in a J.P. Morgan account. the required minimum, you will be asked to post additional collateral.
If you do not, your pledged securities may be sold to satisfy such
The amount required to fully fund the account will be determined
obligation, and you will not be entitled to choose which assets will be
during the mortgage underwriting process. It is based on standard
sold. J.P. Morgan reserves the right to sell your securities at any time,
mortgage loan-to-value ratios (the advance rate) for the size of
as deemed necessary by market conditions and other factors.
the loan, as well as the lending value of the portfolio of securities
being pledged.

BROADEN YOUR STRATEGIC APPROACH

With the Pledged Asset Mortgage, we can help you make pivotal choices for your real estate financing that complement your investment plan
and your tax strategy. To learn more about Pledged Asset Mortgage collateral details or to begin the application process, please contact your
J.P. Morgan representative.

ADDITIONAL CONSIDERATIONS
Loans collateralized by securities involve certain risks and may not be suitable for all investors. Market conditions can magnify any potential for loss. If the market declines, you
may be required to deposit additional securities and/or cash into your account. The securities in your account may be sold to meet a collateral/maintenance call, and J.P. Morgan
may sell your securities without contacting you. In exercising its remedies, J.P. Morgan will not be required to marshal assets or act in accordance with any fiduciary duty it
otherwise might have. Some or all of the securities sold to meet a margin/maintenance call may be sold at prices higher than their initial cost, which may result in adverse tax
consequences. You should consult your tax advisor in order to fully understand the tax implications associated with pledging securities in connection with a margin loan. Please
read your client agreement carefully so that you understand your obligations.
IMPORTANT INFORMATION
JPMorgan Chase Bank, N.A. Member FDIC.
Not a commitment to lend. All extensions of credit are subject to credit approval.
The information provided may inform you of certain investment products and services offered by the private banking business of JPMorgan Chase & Co. or any of its affiliates
(together, “J.P. Morgan”). Bank products and services are offered by JPMorgan Chase Bank, N.A. (JPMCB) and its affiliates. Securities products and services are offered in the United
States by J.P. Morgan Securities LLC, an affiliate of JPMCB, and outside of the United States by other global affiliates. J.P. Morgan Securities LLC, member FINRA and SIPC.
Should you have any questions regarding the information contained in this material or about J.P. Morgan products and services, please contact your J.P. Morgan private banking
representative. Additional information is available upon request. If you no longer wish to receive these communications, please contact your usual J.P. Morgan representative.
Past performance is no guarantee of future results.
Additional information is available upon request.

Not a commitment to lend. All extensions of credit are subject to credit approval.
© 2018 JPMorgan Chase & Co. All rights reserved. PB-18-PRO-1210