Margin Lending

We utilise Macquarie Margin Lending as our primary provider of investment loans. Macquarie Margin Lending provide our clients with a large range of benefits to help you reach your investment objectives:

  • the ability to borrow to invest in a portfolio of Australian and US listed shares
  • the ability to borrow to invest in a selection of Australian managed funds
  • the potential to build wealth faster than if you only used your own funds to invest
  • the ability to use your existing portfolio as security or start a new portfolio
  • the ability to use your shares as security for your loan and as option trading collateral
  • the potential for tax efficiency
  • Online access to your geared investments to keep a daily track of your portfolio

How a margin loan works

  • you borrow 35-80% of the value of the shares and managed funds
  • you contribute your own capital for the balance
  • you invest the total amount in shares and managed funds from an approved list
  • your portfolio is the security for the loan (or you can use an existing portfolio held by a third party)
  • you can write call options against your shares.
  • you can protect your portfolio from drops in the market by taking up put options
  • you can borrow 100% of the share portfolio up to the value of the bought put options.

marging lending

Interest Rate Type

Current standard variable interest rate payable monthly in arrears for new loans only. Ask your advisor for the current rate.

Indicative fixed interest rate available on request payable in advance or arrears.

Amount you can borrow

There is no minimum you can borrow. However, if less than $20 000 is drawn down on the loan balance the applicable interest rate will be charged on $20 000.

Loan term

No fixed loan term

Loan to valuation ratio

35-80% of the total investment

Fees

Establishment fee: Nil
Company search fee: $175
Trade related margin call fee: $50
Third party security fee: $50
Bank fees apply
Closure fees: Nil

To find out more about how a margin loan can help you to increase your profits and become an important tool within your traders tool box. Contact your advisor.

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