Yes, you will still be able to buy and sell shares in your portfolio. However, in some instances, buying and selling can have an impact on your EasyCredit loan, your free cash, and/or your investments:
- Your loan was given to you based on a portion of your shares that qualify for you to borrow against. These are known as qualifying investments and are shares from the top 100 companies and most liquid ETFs.
- We allow you to take a loan at 33% of the loan-to-value of your portfolio. This represents the ratio of how much you are borrowing, vs how many qualifying investments you have.
- If you sell any qualifying investments on which the loan is based, or if the market drops and your qualifying investments’ value goes down, this will impact this ratio.
- When this happens, we will either recoup funds from your free cash or, if not available, sell holdings from your qualified shares to bring the ratio back into an acceptable range. We do allow some leeway with this and will give you ample warning to give you an opportunity to make relevant adjustments in your account.
- If you sell shares in your portfolio, which do not form part of these qualifying investments your EasyCredit loan is not impacted.
It’s important to note that when you select which accounts you would like to use as part of your EasyCredit application process, you are pledging all the qualifying investments in your selected accounts.