For high-net-worth investors, pledging a US brokerage portfolio to borrow in euros for a French property is sometimes possible, but it is not a standard retail-bank solution. It typically requires private banking relationships, careful structuring, and a clear strategy for managing currency and market risks.

To assess feasibility, you need to separate three questions:

• Will a lender accept your US securities as collateral?
• Can they lend in euros secured on those assets?
• Is that structure more attractive than a classic French mortgage?

How French Banks Normally Secure Property Loans for Non-Residents

For most non-resident and expat buyers, French banks secure mortgages primarily on the French property itself, via a standard mortgage or lender’s privilege (IPPD). They typically require:

• 20–30% equity for non-residents, versus potentially higher LTV for residents.
• Full documentation of income, assets, and tax situation.
• Real security over the French property as the key guarantee.

This traditional model is still the default, even for affluent international buyers, because the collateral is located in France, in euros, and easy for the bank to enforce.

When a US Brokerage Portfolio Can Be Used as Collateral

In a private-banking context, particularly for HNW and UHNW clients, there are three main ways your US portfolio might support a euro property acquisition:

• 1. Lombard / securities-backed line, then cash purchase in France
  You pledge your US brokerage account to a private bank (often in the US, UK, Switzerland, Monaco, or Luxembourg). The bank grants a multi-currency credit line secured on the portfolio. You draw in euros to complete a cash purchase of the French property.
• 2. Hybrid: euro mortgage + pledged assets
  A lender may grant a standard French mortgage on the property, but reduce equity or improve terms because you pledge a portion of your portfolio as additional collateral. This is more likely through a private bank than a mainstream French retail bank.
• 3. Margin loan in USD + FX swap into euros
  You borrow against your US portfolio in USD and convert into euros to buy the property. Economically, this is still “using your brokerage account as collateral”, but the lending currency is USD; the FX leg introduces currency risk that you must manage separately.

All three structures exist in the private-banking world. The constraint is not legal permissibility, but institutional appetite and your relationship tier.

What Lenders Look For When Taking US Securities as Collateral

Private banks that accept a US portfolio as collateral for euro lending will typically insist on:

• Custody: assets held (or moved) to an institution or custodian accepted by the lending bank.
• Liquidity: a diversified, liquid portfolio (blue-chip equities, investment-grade bonds, ETFs); concentrated or illiquid positions reduce allowable leverage.
• Haircuts and LTV: lending at perhaps 40–60% of portfolio value in euros, with asset-specific haircuts and daily mark-to-market.
• Cross-border compliance: alignment with US securities regulations, FATCA/CRS reporting, and local rules in your country of residence.

For a HNW client, this often sits within a broader discretionary or advisory mandate, where the bank manages or oversees the pledged assets.

Key Advantages of Using a Brokerage Account as Collateral

• Preservation of investment strategy
  You avoid liquidating appreciated positions and potentially triggering US or UK capital gains tax. This can be particularly attractive in high-gain, low-basis portfolios.
• Speed and discretion
  A well-established private banking relationship can execute a Lombard or margin line more quickly than a new French mortgage dossier, which for non-residents can stretch to 90–120 days from first submission.
• Structuring flexibility
  You can align the currency of borrowing (EUR) with the property and rental income, while keeping the portfolio diversified globally. For some HNW investors, this also fits into a broader wealth- and estate-planning structure.

Risks and Constraints You Need to Quantify

• Market risk and margin calls
  If the value of your US portfolio falls, you may receive a margin call. You must either add collateral, reduce the loan, or allow the bank to liquidate positions—potentially at an inopportune time.
• Currency risk
  If your assets are mostly in USD and the loan is in EUR, you are implicitly running a USD vs EUR position. Moves in the exchange rate affect your real leverage level and, ultimately, your net worth in your reference currency.
• Interest rate and spread
  Lombard and margin lines for HNW clients are often competitively priced, but spreads will still depend on your risk profile, portfolio composition, and overall relationship. You need to compare the all-in cost with a traditional French mortgage.

When a Classic French Mortgage May Still Be Preferable

For many HNW non-resident buyers, a conventional French mortgage remains compelling because:

• The debt is secured only on the French property, not your broader investment portfolio.
• You fix your euro cost of debt for up to 20–25 years, which can be attractive in a diversified, multi-currency balance sheet.
• You keep market risk and margin-call risk strictly separate from your real estate financing.

In practice, sophisticated investors often use a blend: a French mortgage to anchor the property and a securities-backed line to fine-tune liquidity, tax outcomes, and timing of disposals.

In summary: using a US brokerage account as collateral to borrow in euros for French property is feasible for HNW clients through the right banking partners, but it is a bespoke, risk-sensitive structure that should be evaluated alongside—rather than instead of—a well-structured French mortgage.