<prompt> Human: Homes typically return 3-11 while sp500 returns 7-13. Id even be willing to put down the 20 cash collateraldown payment for the sp500. Do why doesnt the bank lend for securities?  <response>: You can repossess a house. It is a loan backed by an underlying asset. If the bank wanted more exposure to equity markets they would just purchase stocks themselves. But a loan backed by stocks is riskier than a loan backed by a house, according to the professionals working for the bank, so the interest rate on a loan backed by stocks must be higher than that backed by a house. Banks will gladly give you a personal loan if you qualify. Spend that on whatever you want. 