How is this different in principle from software developers using the RSUs in their brokerage accounts to get a loan for a vacation home or a boat? BTW the step-up in basis applies for when regular people die.
If you’re talking about someone with enough RSUs to collateralize a home loan, you’re almost certainly talking about someone in the top 1% of wealth in the US
So, uh… it’s not different, no
I was able to get away with only 10% down payment on my home loan precisely because of the holdings in my brokerage account. The rest is on 3.25% / year loan for 30 years. Very similar to the mechanism described in the article. And thus my question.
You could get a sub-3% loan with anywhere from a 5-15% down payment without any holdings in the ballpark that is being discussed.
Top 1% wealth in the US is around 13 million. So I would say you are very far off.