Lending Solutions from Charles Schwab Bank

Support holistic wealth management strategies with complementary lending solutions offered by Charles Schwab Bank (Schwab Bank), including mortgage products through Rocket Mortgage®, the home lending provider of Schwab Bank, and Pledged Asset Lines® (flexible line of credit). 

Explore rate discounts with Schwab Bank's Investor Advantage Pricing – available for eligible mortgage loan products1 and Pledged Asset Lines.2

Eligible clients may receive a 0.25%-1.00% interest rate discount based on their qualifying assets with Schwab Brokerage and Schwab Bank.

Investor Advantage Pricing interest rate discounts

Qualifying non-retirement Schwab assets For purchase and refinance mortgage loans Pledged Asset Line (PAL)
$250,000-$749,999 0.25% 0.25%
$750,000-$4,499,999 0.50% 0.50%
$4,500,000-$8,999,999 0.75% 0.75%
$9,000,000+ 1.00% 1.00%
  • Investor Advantage Pricing interest rate discounts from Schwab Bank are based on the value of a client's combined qualifying non-retirement assets at Schwab Brokerage and Schwab Bank.
  • Discount applies to ARMs, Jumbo 15-yr and Jumbo 30-yr fixed (excludes HELOCs, VA loans, and FHA loans). Discount for ARMs applies to initial fixed-rate period only.

Help find the right home lending solution.

Schwab Bank offers access to a variety of competitively priced lending solutions, including home mortgages, and home equity lines of credit (HELOCs). Borrowers can select from a range of mortgage options3.

  • Adjustable-rate mortgages (ARMs).
  • Fixed-rate mortgages.
  • Interest-only ARMs.

Schwab Bank's home lending program through Rocket Mortgage provides:

  • A simple and efficient mortgage origination and closing process.
  • A dedicated team to support Charles Schwab & Co., Inc. (Schwab) clients.
  • Convenient online tools to sign and upload documents and track loan progress.

 

Rocket Mortgage's Verified Approval Letter (VAL) program provides a competitive edge when buying a home

Schwab Bank's home lending provider, Rocket Mortgage, offers a Verified Approval Letter (VAL)4―a program in which clients can be preapproved for a mortgage loan before starting their home search. The loan is underwritten up front with full credit, income, and asset verification to ensure an expedited process.

A home equity line of credit can help your clients tap into the value of their home.5

Your clients may be able to take advantage of the equity in their home to finance home improvement projects, consolidate debt, pay for educational expenses, or finance a major purchase. Rocket Mortgage offers a home equity line of credit (HELOC) with a competitive rate5. The HELOC offers:

  • A revolving line of credit and two types of accounts are available: Standalone HELOCs applied for and opened independently of any other mortgages on the home or Piggyback HELOCs which are applied for and opened simultaneously with the first mortgage at the time of purchase or refinance.
  • Interest charges only on the amount borrowed during the initial 10-year draw period.
  • Flexibility to use the line again once it is paid down prior to the repayment period.
  • Easy account access using Zelle, Push to debit, ACH and wires.

Access the portfolio's value with a flexible line of credit from Schwab Bank.

To help investors tap into the value of their investments and access cash for personal or business needs, generally without having to sell securities, Schwab Bank offers a Pledged Asset Line6, a non-purpose line of credit that allows clients to borrow against the non-retirement assets in their portfolio. 

Secured by assets held in a separate Pledged Account maintained by Charles Schwab & Co., Inc., clients can use their line of credit to access the funds they need while maintaining their investing strategy.

This non-purpose line of credit can be used for a wide range of financial needs:

  • Bridge funding for a new home
  • Home renovation
  • New business startup
  • Tax payments
  • College tuition
  • Dream vacation

This flexible line of credit offers:

  • Line amounts beginning at $100,000 with a minimum initial advance requirement of $70,000.
  • Competitive variable rates, based on the Secured Overnight Financing Rate ("SOFR") plus an interest rate spread.
  • Interest charges only on the amount of the line used.
  • Line access via checks or wire transfers.
  • No set-up fees or prepayment penalty. Brokerage fees and commissions may apply.

Entering into a Pledged Asset Line and pledging securities as collateral involve a high degree of risk. At any time, including in the event that the loan value of collateral is insufficient to satisfy the minimum loan value of collateral or to support the outstanding loans, Schwab Bank may demand immediate payment of all or any portion of the outstanding obligations, or require additional cash or securities to be added to the Pledged Account maintained at Charles Schwab & Co., Inc. If a Demand is not addressed, the pledged securities may be immediately liquidated without further notice to you, which may result in tax consequences.

To learn more, visit the Introduction to the new Pledged Asset Line section in the Service Guide or call Schwab Bank at 800-497-7470 to speak with a Regional Banking Manager.

Pledged Asset Line rates

Loan Value of Collateral at Origination Annual Percentage Rate (APR)
$100,000 to <$250,000 SOFR +4.40%
$250,000 to <$500,000 SOFR +3.90%
$500,000 to <$1,000,000 SOFR +3.40%
$1,000,000 to <$2,500,000 SOFR +2.90%
$2,500,000 and above SOFR +2.40%

Schwab Bank reserves the right to change any part of the interest rate after the Pledged Asset Line is established, including the daily Secured Overnight Financing Rate ("SOFR") reference rate, interest rate spread, or post-demand spread.

The initial variable Annual Percentage Rate on the Pledged Asset Line, based on the loan value of the collateral pledged at origination, is the sum of SOFR plus the applicable Interest Rate Spread shown above. Pledged Asset Line amounts begin at $100,000 with a required initial minimum advance of $70,000.

This offer is subject to change or withdrawal at any time and without notice. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and collateral approval. Other conditions and restrictions may apply.

Charles Schwab Bank, SSB, is not acting or registered as a securities broker-dealer or investment advisor.

 

Equal Housing Lender

 

Contact

Have questions?

Contact us by phone to find a local representative.

877-687-4085

All inquiries are confidential.

(0923-3X5Y) - (0324-FJ3L)

Brokerage Products: Not FDIC-Insured • No Bank Guarantee • May Lose Value

In order to participate, the borrower must agree that the lender, Rocket Mortgage, may share their information with Charles Schwab Bank and Charles Schwab Bank will share their information with the lender Rocket Mortgage. Nothing herein is or should be interpreted as an obligation to lend. Loans are subject to credit and collateral approval. Other conditions and restrictions may apply. This offer is subject to change or withdraw at any time and without notice. Interest rate discounts cannot be combined with any other offers or rate discounts. Hazard insurance may be required.

1. Schwab Bank Mortgage Investor Advantage Pricing: For Schwab Bank Investor Advantage Pricing (IAP): Loans are eligible for only one Investor Advantage Pricing discount per loan. Select mortgage loans are eligible for an interest rate discount of 0.25% - 1.00% based on qualifying assets of $250,000 or greater. Discount applies to ARMs, Jumbo 15-yr and Jumbo 30-yr fixed (excludes HELOCs, VA loans, and FHA loans). Discount for ARMs applies to initial fixed-rate period only.

Qualifying assets are based on non-retirement Schwab brokerage and Schwab Bank combined account balances, including:

a) Brokerage accounts in which the borrower(s) is an owner, trustee or custodian;
b) Bank accounts in which the borrower(s) is an owner or trustee: checking & savings;
c) Corporate, LLC, Partnership and Sole Proprietorship accounts may be eligible depending on the borrower's ownership and role.

Retirement accounts, including all IRAs, are excluded from this offer. Schwab Bank makes its best effort to identify all qualifying assets based on your Social Security Number. If you have questions regarding your specific assets or account eligibility, please call your Regional Banking Manager for assistance.

Clients must notify Schwab and Rocket Mortgage of any new assets brought to firm during processing. Qualifying new assets should be deposited and verified 15 days prior to the anticipated closing date to avoid closing delays. If the qualifying assets are deposited with less than 15 days remaining before closing, the closing date may be delayed, and eligibility to receive the interest rate discount may be affected.

2. For Charles Schwab Bank & Charles Schwab Premier Bank Pledged Asset Line (PAL) Investor Advantage Pricing (IAP):  PALs to natural persons and trusts are eligible for only one Investor Advantage Pricing discount per loan. PALs are eligible for an interest rate discount between 0.25% and 1.00% based on Borrower's Schwab brokerage and Schwab Bank combined qualifying assets totaling $250,000 or greater. Loans to organizational borrowers are not currently eligible for IAP discounts.

  1. For PAL loans made to individuals, the “Borrower” is defined as any natural person(s) identified as Borrower(s) in the PAL loan application. Qualifying assets are based on the combined account balances as listed below: 
    1. Brokerage accounts in which the Borrower is an owner, trustee or custodian;
    2. Bank deposit accounts in which the Borrower is an owner or trustee: checking & savings;  
    3. Non-retirement Corporate, LLC, Partnership and Sole Proprietorship accounts may be eligible depending on the Borrower's ownership and role (excludes business retirement accounts such as Simple IRA, SEP IRA & Pension Trust). 
  2. For PAL loans made to revocable trusts, the “Borrower” is defined as the Trust named in the PAL loan application. Qualifying assets are based on the combined account balances as listed below:
    1. Brokerage accounts in which the Borrower is an owner; 
    2. Bank deposit accounts in which the Borrower is an owner: checking & savings; 
    3. The qualifying assets, as outlined in Section A above, of any natural person(s) named as BOTH “Trustee of Trust Borrower” AND “Grantor of Trust Borrower” as identified in the PAL loan application.
  3. For PAL loans made to irrevocable trusts, the “Borrower” is defined as the Trust named in the PAL loan application. Qualifying assets are based on the combined account balances as listed below:
    1. Brokerage accounts in which the Borrower is an owner; 
    2. Bank deposit accounts in which the Borrower is an owner: checking & savings; 

*Clients of Independent Investment Advisors: Qualifying assets are based on non-retirement Schwab brokerage and Schwab Bank combined account balances. Retirement accounts, including all IRAs, are excluded from this offer.

Schwab Bank and Schwab Premier Bank make their best effort to identify all qualifying assets based on your client profile. If you have questions regarding your specific assets or account eligibility, please call your Regional Banking Manager for assistance.

Qualifying new assets must be deposited prior to the start of an application to be considered for discount purposes.

Charles Schwab Bank, SSB, Charles Schwab Premier Bank, SSB (each, an Affiliated Bank and together, the Affiliated Banks), and Schwab are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Pledged Asset Lines to be held individually, jointly by natural persons, or by revocable trusts are offered by Charles Schwab Bank, SSB. Pledged Asset Lines to be held by incorporated organizations, non-incorporated organizations, or irrevocable trusts (collectively “entities”) are offered by Charles Schwab Premier Bank, SSB. Brokerage products, including the Pledged Account, are offered by Charles Schwab & Co., Inc., Member SIPC and are not insured by the FDIC, are not deposits or obligations of Affiliated Banks, and are subject to investment risk, including the possible loss of principal invested. The Affiliated Banks are not acting or registered as securities broker-dealers or investment advisors.

3. Interest-only mortgages have an initial interest-only payment period followed by a fully amortizing payment period. After the interest-only period ends, the monthly payments will increase because your client will be paying both principal and interest. 

4. For Verified Approval Letter (VAL): VAL is a service available exclusively from Rocket Mortgage. Rocket Mortgage verifies the home buyer's income, reviews credit, and underwrites the proposed loan without an identified property. Not all properties are eligible. Once a property has been identified and approved, Rocket Mortgage may issue final loan approval. The interest rate does not lock until a contract is entered, and so rates may change without notice. Other conditions and restrictions may apply. No loan will issue without buyer's provision of insurance, an adequate appraisal, and clear title. This advertisement is not an offer to lend, and does not empower your client to accept any loan agreement. VAL terms and conditions may change without notice

5. Home equity lines have a 10‐year draw period followed by a 20‐year repayment period. During the draw period, monthly payments of accrued interest are required.  Payments will increase if rates increase. At the end of the draw period, your required monthly payments will increase because you will be paying both principal and interest. 

Rates vary for second homes, vacation homes, or HELOCs opened as standalone accounts. The APR on your home equity line of credit is variable based upon the Wall Street Journal Prime Rate plus a margin. The maximum APR that can apply is 18% or the maximum amount permitted by state law, whichever is less. The minimum credit line amount is $50,000 or the minimum amount permitted by state law, whichever is less. The maximum credit line is $1,000,000. Additional terms and conditions apply. Please contact your Schwab Bank representative for assistance regarding eligible loan types.

HELOC Fees: The estimated range of fees you may pay is from $0 ‐ $29.00 for every $1,000 of your line amount and will vary based on the location of the property. The amounts provided are estimates and are not a substitute for initial disclosures of closing costs that you will receive once you apply for a home equity line of credit with Rocket Mortgage. Proof of proper and adequate insurance may be required prior to closing. You are responsible for paying any state, county, or local taxes imposed on a home mortgage transaction.

6. Pledged Asset Line: The Pledged Asset Line is a demand line of credit provided by either Charles Schwab Bank, SSB, or Charles Schwab Premier Bank, SSB, (each, an Affiliated Bank and together, the Affiliated Banks). As a non-purpose line of credit, proceeds may not be used to purchase securities, pay down margin loans, or be deposited into any brokerage account.

Entering into a Pledged Asset Line and pledging securities as collateral involves a high degree of risk. You are pledging securities, the value of which is affected by events outside your control. Market fluctuations may cause the value of your pledged assets to decline.  In addition, the Affiliated Banks, in its sole discretion, will determine at any time the eligible collateral criteria and the loan value of collateral. The Pledged Asset Line is uncommitted and the Affiliated Banks may demand full repayment at any time for any reason or no reason. In addition, if the loan value of collateral is insufficient to satisfy the minimum credit facility size or to support the outstanding loans, the Affiliated Banks may demand immediate payment of all or any portion of the outstanding obligations, or require additional cash or securities be pledged;  otherwise the Affiliated Banks may immediately sell some or all of the pledged securities without further notice to you, which may result in tax consequences.

A Pledged Asset Line requires a brokerage account ("the Pledged Account") at Charles Schwab & Co., Inc. and sufficient eligible collateral to support a minimum credit facility size of $100,000.  Brokerage products, including the Pledged Account, are offered by Charles Schwab& Co., Inc., Member SIPC and are not insured by the FDIC, are not deposits or obligations of Affiliated Banks, and are subject to investment risk, including the possible loss of principal invested. The Affiliated Banks are not acting or registered as securities broker-dealers or investment advisors.

Pledged Asset Lines to be held individually, jointly by natural persons, or by revocable trusts are offered by Charles Schwab Bank, SSB. Pledged Asset Lines to be held by incorporated organizations, non-incorporated organizations, or irrevocable trusts (collectively "entities") are offered by Charles Schwab Premier Bank, SSB.

Minimum initial advance of $70,000 required. All loans are subject to credit and collateral approval. Before you decide to apply for a Pledged Asset Line, make sure you understand the risks.

Charles Schwab Bank, SSB and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products, including the Pledged (Asset) Account, are offered by Charles Schwab & Co., Inc., Member SIPC, and are not insured by the FDIC, are not deposits or obligations of Charles Schwab Bank, SSB and are subject to investment risk, including the possible loss of principal invested. Charles Schwab & Co., Inc. does not solicit, offer, endorse, negotiate, or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. Home lending is offered and provided by Rocket Mortgage, LLC. Rocket Mortgage LLC., is not affiliated with The Charles Schwab Corporation, Charles Schwab & Co., Inc. or Charles Schwab Bank, SSB. Deposit and other lending products are offered by Charles Schwab Bank, SSB, Member FDIC and Equal Housing Lender.

Rocket Mortgage, LLC; NMLS #3030; www.nmlsconsumeraccess.org. Equal Housing Lender. Licensed in 50 states. AL License No. MC 20979, Control No. 100152352. AR, TX: 1050 Woodward Ave., Detroit, MI 48226-1906, (888) 474-0404; AZ: 1 N. Central Ave., Ste. 2000, Phoenix, AZ 85004, Mortgage Banker License #BK-0902939; CA: Licensed by Dept. of Business Oversight, under the CA Residential Mortgage Lending Act and Finance Lenders Law; CO: Regulated by the Division of Real Estate; GA: Residential Mortgage Licensee #11704; IL: Residential Mortgage Licensee #4127 – Dept. of Financial and Professional Regulation; KS: Licensed Mortgage Company MC.0025309; MA: Mortgage Lender License #ML 3030; ME: Supervised Lender License; MN: Not an offer for a rate lock agreement; MS: Licensed by the MS Dept. of Banking and Consumer Finance; NH: Licensed by the NH Banking Dept., #6743MB; NV: License #626; NJ: New Jersey – Rocket Mortgage, LLC, 1050 Woodward Ave., Detroit, MI 48226, (888) 474-0404, Licensed by the N.J. Department of Banking and Insurance.; NY: Licensed Mortgage Banker – NYS Banking Dept.; OH: MB 850076; OR: License #ML-1387; PA: Licensed by the Dept. of Banking – License #21430; RI: Licensed Lender; WA: Consumer Loan Company License CL-3030. Conditions may apply.