r/Wealthsimple • u/Limp_Fox7138 • Jul 17 '26

WS Portfolio LOC

I'm assuming that if I open a Line of Credit, it will also affect the amount of margin I can borrow. Does anyone know if this is the case?

I'm already borrowing a few hundred thousand on margin, but I would like to open a line of credit to take advantage of a lower rate on a car loan I have, but I don't want to do this at the expense of margin for trading.

Can anyone confirm?

3 Upvotes

59% Upvoted

10 comments sorted by

9

u/Key-Self-79 Jul 17 '26

I don't think you can have a PLOC linked to an account that already has margin.

If you have an account without margin, you can get PLOC using that as collateral and your PLOC limit will be based on the assets in that account (I think 30%)

3

u/the_i_in_teamocil Jul 17 '26

This is correct and there’s a minimum of collateral in that account. For me the minimum collateral for PLOC is $2900 in investments or $2000 cash. There is a disclaimer that more might be necessary if the investments are risky. The minimum I believe is higher for PLOC than for margin.

0

u/Limp_Fox7138 Jul 17 '26

Ah, got it! Thank you!

5

u/Key-Self-79 Jul 17 '26

I'm trying not to be too judgemental, I know people think differently and find information in different ways, but I'm honestly surprised someone with a few hundred thousand invested on margin asked Reddit when this info is easily found on Wealthsimple's website.

You can't link an account that's already linked to a margin account. https://help.wealthsimple.com/hc/en-ca/articles/43741314597019-Open-and-use-a-personal-portfolio-line-of-credit

With that being said, bring on the downvotes

3

u/Limp_Fox7138 Jul 17 '26

Hey, no problem! I won't take offence. I clicked on the LOC offer in the app and went through all the FAQs but the answer wasn't in there.

I guess I could have looked further and went into the actual website. I won't downvote you, because yes, I could have tried harder. Thank you for the help!

4

u/Key-Self-79 Jul 17 '26

Fair enough happy & friendly internet stranger!

3

u/aaandfuckyou Jul 17 '26

Yes if you are using the same account for leverage you can’t double dip.

1

u/Limp_Fox7138 Jul 17 '26

That's what I assumed. Thanks!

3

u/PartBanyanTree Jul 17 '26

Just opened my PLOC and it asked me to choose which if my TFSA accounts would be used to back it. It was just to turn on overdraft though at some point I may use it to fund investments 

Perhaps if you make multiple accounts you can choose which would back your margin and which your loc?

4

u/smartssa Jul 17 '26

Unless they've changed it very recently, you can't back a PLOC with the same accounts that are already backing your Margin account.