- Many affluent home buyers are choosing to finance property purchases rather than pay cash
- Wealthy buyers see financing as part of a planning and cash-flow management strategy
- Financing makes sense if the return on investment is higher than the interest rate
- There are alternative mortgage options for high-net-worth clients
- Clients can also borrow against other assets like securities
- For jumbo mortgages, banks still offer the cheapest funding
- Despite the benefits of financing, some wealthy buyers still prefer to pay cash
- Cash buyers have more leverage and buying power
- Financing may be recommended for high-net-worth clients who find a perfect home at an advantageous price
Many affluent home buyers are choosing to finance property purchases rather than pay cash, as it is seen as part of a planning and cash-flow management strategy. Financing makes sense if the return on investment is higher than the interest rate. There are alternative mortgage options for high-net-worth clients, such as adjustable-rate mortgages and interest-only loans. Clients can also borrow against other assets like securities. For jumbo mortgages, banks still offer the cheapest funding. However, some wealthy buyers prefer to pay cash, as it gives them more leverage and buying power. Financing may be recommended for high-net-worth clients who find a perfect home at an advantageous price.
