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High-net-worth individuals (HNWIs) often seek more flexible, tailored financing options than traditional borrowers. One increasingly popular strategy among private banking clients is leveraging their home equity through a Home Equity Line of Credit (HELOC). Unlike conventional HELOCs, private-bank HELOCs can offer loan-to-value (LTV) ratios as high as 90%, providing greater liquidity while preserving investment portfolios and minimizing tax burdens.
What Is a Private-Bank HELOC?
A Private-Bank HELOC is a revolving line of credit secured against a borrower’s real estate—typically a primary or secondary residence—offered exclusively to high-net-worth clients through private banking divisions of financial institutions. These HELOCs differ from conventional offerings in several key ways:
- Higher CLTV (Combined Loan-to-Value) thresholds—often up to 90%
- Custom underwriting standards
- Interest-only payment structures
- Preferential rates and terms
This financing tool allows wealthy borrowers to monetize their real estate assets without selling them, thereby keeping capital gains taxes at bay and maintaining real estate appreciation.
How Does the 90% CLTV Work?
CLTV refers to the ratio of all secured loans on a property relative to its current appraised value. For example:
If your home is worth $5 million and your mortgage balance is $1 million, a private-bank HELOC with 90% CLTV allows access to up to $3.5 million in total borrowing power.
Why Banks Offer Higher CLTVs to HNW Clients
- Lower perceived risk: HNWIs generally have strong asset portfolios and multiple income streams.
- Stronger credit profiles: These borrowers typically maintain excellent credit and low default risk.
- Deep client relationships: Private banks prioritize long-term engagement, often bundling HELOCs with investment management and other services.
Benefits of Private-Bank HELOCs for HNW Clients
1. Enhanced Liquidity Without Liquidation
Access capital for investments, business ventures, or luxury purchases without selling appreciating assets like stocks or real estate.
2. Tax-Advantaged Borrowing
In some cases, interest on HELOCs may be tax-deductible when used for home improvements or investments (consult your tax advisor).
3. Flexible Usage and Terms
Borrow what you need, when you need it. Many private-bank HELOCs offer draw periods of 10+ years, with interest-only payments during the draw period.
4. Integrated Wealth Management
Banks often offer integrated advice to use HELOCs as part of broader estate, tax, or investment strategies.
Who Qualifies for a Private-Bank HELOC?
Private-bank HELOCs aren’t available to everyone. Most institutions require:
- A minimum of $1–$5 million in investable assets
- High FICO scores (typically 720+)
- Ownership of qualifying real estate in a prime market
- Relationship with the bank’s wealth management division
Want to know if you qualify?
Contact us for a personalized assessment or check our Private Banking Services.
Use Cases: How HNW Clients Leverage 90% CLTV HELOCs
Real Estate Acquisition
Tap into home equity to fund down payments on second homes or investment properties.
Tax Planning
Borrowing via HELOCs may be a more tax-efficient way to access cash than triggering capital gains.
Portfolio Management
Use borrowed funds to strategically invest during market downturns, preserving portfolio assets while leveraging low-interest credit.
Risks and Considerations
While private-bank HELOCs offer numerous benefits, it’s essential to understand the risks:
- Market fluctuations may impact property valuations and available equity.
- Interest rate variability can lead to higher borrowing costs over time.
- Overleveraging may expose even HNWIs to liquidity risk during economic downturns.
Tip: Always work with a financial advisor to evaluate how a HELOC aligns with your broader wealth strategy.
FAQs About Private-Bank HELOCs
Can a private-bank HELOC be used for non-home-related expenses?
Yes. Unlike standard HELOCs, these lines can be used for business ventures, investments, tuition, or other needs.
Is the 90% CLTV available nationwide?
Availability varies by lender and property location. Prime markets like New York, San Francisco, and Miami are often favored.
Does a private-bank HELOC impact my credit score?
Yes, it appears as a revolving line of credit, but responsible usage generally benefits your credit profile.
Have questions about using home equity as part of your wealth plan?
Speak with a lending expert today.
Ready to explore private-bank HELOC options?
Download our HELOC Planning Guide.
Read Next
- Discovering Investment Property HELOC Lenders in Every State
- Ultimate Guide to Luxury Home Mortgage Lenders: Finding the Perfect Match for Your High-Value Property (2025)
Final Thoughts
Private-bank HELOCs that offer up to 90% CLTV provide a powerful, flexible financing strategy for high-net-worth individuals. Whether you’re looking to optimize cash flow, invest in new ventures, or enhance your tax planning strategy, these specialized lending tools can unlock significant value from your existing assets.
Unlock Your Home Equity with Figure
- Approval in 5 minutes. Funding in as few as 5 days
- Borrow $20K-$400K
- Consolidate debt or finance home projects
- Fastest way to turn home equity into cash
- 100% online application
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
