The benefits arising from margin lending over traditional principal and interest mortgage loans typically include:

Question

Quizplus · Accepted Answer

Margin lending offers both liquidity and investment diversification opportunities compared to traditional mortgage loans. However, it is important to note that while the interest rate on margin loans may be lower, the risk associated with margin lending is higher, as it involves borrowing against investments and leaves the borrower vulnerable to market volatility.

The Benefits Arising from Margin Lending Over Traditional Principal and Interest