SBLOC Rates 2026: Schwab, Fidelity, IBKR, Morgan Stanley

Rate data current as of April 26, 2026. Each broker's published spread schedule changes — verify directly with the lender before sizing a draw. Source links for each schedule are at the bottom of this post.

If you are pricing out a Securities-Backed Line of Credit to fund a home purchase, the single biggest variable is the rate. A 100 basis point difference on a $1 million line is $10,000 a year, every year, until you pay it down. Over a five-year horizon, the rate spread between two brokerages can dwarf any other consideration. (If you're still deciding whether SBLOC is the right structure for you at all, our HNW home buyer financing guide walks through the five-way comparison first.)

This post compares the four most common venues HNW investors use for SBLOC-style borrowing in 2026: Charles Schwab's Pledged Asset Line, Fidelity Margin, Interactive Brokers Pro margin, and Morgan Stanley's Liquidity Access Line. Rates are based on publicly posted schedules as of early 2026 and are subject to change.

Horizontal bars: 2026 SBLOC rates by broker — IBKR 5.83%, Morgan Stanley 6.75%, Merrill 7.00%, Schwab 7.125%, Fidelity 7.25%.

A Note on Methodology

Each lender quotes rates as a spread over a benchmark — typically SOFR (the Secured Overnight Financing Rate) published daily by the New York Fed. For consistency, this comparison uses an assumed SOFR of 4.50%, which is a reasonable midpoint for early 2026. To get the actual cost on the day you borrow, take the lender's spread and add it to the SOFR rate you see when you draw.

We will use a $1 million draw as the comparison size. Smaller lines pay higher spreads at every brokerage, often by 100–200 basis points. Larger lines (above $5M) typically negotiate down further than the published schedule suggests.

Charles Schwab Pledged Asset Line

Schwab's PAL is the closest thing to a "standard" SBLOC for the mass-affluent and HNW crowd. The product is structured as a non-purpose loan, meaning proceeds cannot be used to buy securities — but real estate, business expenses, and personal use are all eligible.

Approximate spread schedule over SOFR for a non-priority client:

Under $250K: SOFR + 3.75% (so ~8.25% all-in)
$250K to $1M: SOFR + 2.75% (so ~7.25%)
$1M to $5M: SOFR + 2.25% (so ~6.75%)
$5M to $25M: SOFR + 1.75% (so ~6.25%)

For a $1M draw, expect roughly 6.75% all-in. Schwab Private Client and ultra-high-net-worth relationships can negotiate the spread down 25–75 basis points.

Strengths: large advance rates against diversified portfolios (often 65–70% on equity index funds), fast funding, no application fee, and a familiar interface for existing Schwab clients.

Weaknesses: spreads are 50–100 bp higher than IBKR for the same line size. Maintenance ratio enforcement is strict — Schwab is one of the more aggressive lenders about issuing calls on a 5–7 day timeline.

Fidelity Margin and Goal Booster

Fidelity does not market a standalone SBLOC product the way Schwab does. Instead, HNW Fidelity clients typically use either Fidelity Margin (a regulated margin loan inside the brokerage account) or work through Fidelity Private Wealth for a custom liquidity solution.

Approximate published Fidelity margin schedule:

Under $25K: SOFR + 4.5% (so ~9.0%)
$25K to $250K: SOFR + 3.5% (so ~8.0%)
$250K to $1M: SOFR + 2.0% (so ~6.5%)
$1M to $5M: SOFR + 1.0% (so ~5.5%)
Over $5M: SOFR + 0.625% (so ~5.125%)

For a $1M draw, expect roughly 5.50% all-in — meaningfully cheaper than Schwab's PAL.

The catch: a regulated margin loan can be called more aggressively than a non-purpose SBLOC, and the proceeds cannot legally be used to buy other securities. For a home purchase that is not a constraint, but you should understand you are operating under Reg T rather than under a non-purpose loan agreement.

Strengths: very competitive rates at the $1M+ level, integrated with Fidelity portfolios, no separate application for existing clients.

Weaknesses: Reg T mechanics, less hand-holding than a dedicated wealth-management SBLOC, advance rates can be lower than a Schwab PAL for the same portfolio.

Interactive Brokers Pro Margin

IBKR has been the price leader on margin rates for a decade and remains so in 2026. The IBKR Pro margin rate is benchmarked to a tighter version of SOFR with very aggressive spreads at every tier.

Approximate IBKR Pro schedule:

Under $100K: SOFR + 1.5% (so ~6.0%)
$100K to $1M: SOFR + 1.0% (so ~5.5%)
$1M to $3M: SOFR + 0.5% (so ~5.0%)
$3M to $10M: SOFR + 0.375% (so ~4.875%)
$10M to $50M: SOFR + 0.25% (so ~4.75%)

For a $1M draw, expect roughly 5.00% all-in — the lowest of the four venues, by 50 to 175 basis points.

The catch: IBKR is a brokerage, not a wealth manager. There is no relationship banker, no white-glove call avoidance program, and the margin enforcement is the most algorithmic in the industry. If your account violates maintenance, IBKR will liquidate within minutes, not days.

Strengths: cheapest carry available without a private-bank relationship; transparent rate schedule; works with virtually any liquid security.

Weaknesses: aggressive automated liquidation; less suitable for HNW clients who want a human in the loop; the proceeds are technically margin and the same legal restrictions apply.

Morgan Stanley Liquidity Access Line

The Morgan Stanley LAL is the high-touch, full-service option. It is a non-purpose pledged-asset line offered through Morgan Stanley Private Bank and is typically available only to clients with a $1M+ relationship.

Published spread schedule is more variable than the other three because much of the pricing is negotiated. Indicative ranges for early 2026:

$500K to $1M: SOFR + 3.0% (so ~7.50%)
$1M to $5M: SOFR + 2.25% (so ~6.75%)
$5M to $25M: SOFR + 1.50% (so ~6.00%)
Over $25M: SOFR + 1.00% or below (so ~5.50% or lower)

For a $1M draw, expect roughly 6.75% — comparable to Schwab, but with material concessions for top-tier clients.

Strengths: white-glove service, banker availability during market stress, can be structured as part of a broader wealth-planning relationship, often paired with custom mortgage pricing.

Weaknesses: most expensive carry of the four for a sub-$5M relationship; requires a broader wealth-management engagement.

Side-by-Side Math on a $1M Draw

Annual interest cost at the rates above:

Venue	Approx Rate	Annual Interest on $1M
Interactive Brokers Pro	5.00%	$50,000
Fidelity Margin	5.50%	$55,000
Schwab PAL	6.75%	$67,500
Morgan Stanley LAL	6.75%	$67,500

Over five years of carrying the line, the spread between IBKR and Schwab/Morgan Stanley is roughly $87,500 in cumulative interest. That is real money, and it should weigh heavily if your decision criteria are pure cost.

Why You Might Pay More Anyway

Cheaper is not always better with leverage. Three reasons HNW buyers routinely pay 100+ basis points more than the IBKR rate:

Margin call response time. Schwab and Morgan Stanley typically give you 5–7 business days to satisfy a call. IBKR will liquidate within minutes. If you are levered against a volatile portfolio, the extra cushion is worth real money.

Banker relationships. A Morgan Stanley banker with discretion to negotiate a temporary maintenance waiver during a 2008-style event is valuable. There is no equivalent at IBKR.

Bundled pricing. A Morgan Stanley client who is also taking a jumbo mortgage from the bank may get a meaningful rate concession on both products. The "blended" cost can come in below the lowest standalone option.

Regulatory regime. A Schwab PAL is a non-purpose loan, not a margin loan. The classification has implications for both how the loan is enforced and how the interest may be treated for tax purposes (with caveats — see our post on SBLOC tax deductibility).

How to Use This in Your Decision

If you are price-sensitive and operationally sophisticated, IBKR Pro margin is almost certainly your best venue. Set the initial LTV very conservatively — 30–40% — to absorb the more aggressive enforcement.

If you value relationship and call protection, Schwab PAL or Morgan Stanley LAL are reasonable choices. Negotiate. The published schedule is the starting point, not the ceiling.

If you are already a Fidelity client at the $1M+ level, the standard margin rate is competitive enough that opening a new account elsewhere may not be worth the operational hassle.

See It Modeled Against Your Numbers

Stockstead lets you plug in any rate — IBKR's 5.00%, Schwab's 6.75%, or whatever your banker quoted last week — and see the after-tax cost of an SBLOC against the cash and mortgage scenarios. The rate matters, but so does your tax bracket, your cost basis, and your expected portfolio return.

Compare Your Options with Stockstead →

A 175 basis point spread is real. So is the cost of a 4 a.m. forced liquidation. Pick the venue that matches your operational tolerance, not just the lowest sticker rate.

Sources and further reading

Rates current as of early 2026 from publicly posted schedules. Lender rate schedules change frequently; verify directly with the brokerage before sizing a draw. Educational, not financial advice. Tyler Singletary is the founder of Stockstead and is not a licensed financial advisor.