Case Study · Singapore

Property financing helps retail investor cover margin call

4 September 2018

Property financing helps retail investor cover margin call

A retail investor was caught off guard by a sudden swing in the financial markets, which resulted in a margin call on their investment portfolio. To avoid the liquidation of their shares, they needed to make a deposit to their trading account, but their traditional bank was unable to provide them with a loan against their residential property in the tight timeline.

In a panic, the individual reached out to Rikvin Capital for help. To their relief, Rikvin Capital was able to close a S$3,800,000 loan against the individual’s property within 24 hours. The property loan allowed the retail investor to top up their trading account and prevent the liquidation of their shares.

This experience taught the individual the importance of having a reliable financial partner who could provide quick and effective solutions in times of need. They were grateful for the support from Rikvin Capital and felt relieved that their investments were secure. They were now more confident in navigating the financial markets, knowing that they had a partner to turn to in case of any emergencies.

Problem

  • A retail investor had a margin call on his investment portfolio due to a sudden swing in the financial markets.
  • A deposit to his trading account was required in order for him to keep his positions open.
  • To cover his margin requirements, the individual decided to take a loan against his residential property.
  • However, he was unable to get a property loan from a traditional bank due to the urgency of the situation.

Solution

  • Rikvin Capital closed a S$3,800,000 loan against the individual’s property within 24 hours.
  • The property loan allowed the retail investor to top up his trading account, which prevented the liquidation of his shares.
  • Location: Serangoon Gardens, Singapore
  • Market Value: S$ 6,600,000
  • Loan Amount: S$ 3,800,000
  • Loan-to-Value: 55%
  • Duration of Loan: 3 Months
  • Payment Schedule: Rolled-Up Interest Payment
  • Asset Type: Landed Property
  • Completion Time: 24 Hours

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FAQ

I have a margin call. Can a property loan help me cover it?

Yes. We can lend against your residential or commercial property and release funds within 24 to 72 hours, in time for most margin-call deadlines. The Serangoon Gardens client here received $3.8 million in 24 hours, which let them top up their trading account and avoid forced selling of shares.

How much can I borrow against a Singapore landed home for an urgent loan?

We typically lend up to 70% of property value, but for 24-hour turnarounds like this margin-call case we sometimes lend less (here, 55%) to keep the underwriting tight given the speed. You can borrow more if the timeline allows full due diligence.

Can I avoid monthly payments while my cash is tied up?

Yes. Rolled-up interest is popular for short-term cash-flow events. You make no monthly payments; the interest is added to the loan and paid in full at the end. The margin-call borrower here used this on a 3-month loan so their cash stayed in the trading account.

How fast can you actually release the money in an emergency?

For known clients with clean property collateral, 24 hours is realistic. For new clients we typically need 3 to 5 days for KYC, valuation and legal work. Send us a property summary and a short note on the urgency, and we will tell you within hours whether we can hit the deadline.