Helping an Investor Keep Their Tesla Stock and Still Get a Mortgage
"A real story about choosing the mortgage that made sense, not just the one with the lowest rate."
๐ The Challenge
Our client held a significant Tesla stock position and multiple sources of debt. To improve his qualifying ratios, a traditional (A) lender wanted him to liquidate part of that position.
๐Investor ๐ Large Stock Position ๐ Multi-Source Debt
However, selling the stock to satisfy the lender would have triggered a capital gains tax bill โ an expensive way to get a slightly better rate.
Why?
"The lowest rate on offer isn't automatically the cheapest path." โ Cost analysis during the file review
๐ This is a common roadblock for:
- Investors with concentrated stock positions
- Anyone told to sell assets to "improve" their qualifying ratios
- Buyers weighing rate against total cost, not just the number on paper
And it's a reminder that the best mortgage decision sometimes means turning down the better-looking rate.
Deliberately chose a B lender with more flexible debt ratios instead of the A lenderโs stock-sale requirement.
Modeled the tax cost of selling the stock against the premium of the B-lender rate.
Planned a refinance timeline to move back to an A lender once the numbers made sense.
A slightly higher rate for about a year turned out to be the financially smarter move.
๐ What You Can Learn from This
The lowest advertised rate isnโt always the lowest total cost once taxes are factored in.
B lenders can be the strategically better choice not just the fallback option.
A short-term rate premium can be part of a plan not a compromise.
๐ Call to Action
Facing pushback due to your job or income style?
Let us help tell your story โ and find the right mortgage solution for you.
๐ง paul.davidescu@mortgagepal.ca