Margin Loans Cheap Margin Loans - opinions

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by Nick23, 12th Sep, 2018.

Join Australia's most dynamic and respected property investment community
  1. Nick23

    Nick23 Active Member

    Joined:
    17th Aug, 2015
    Posts:
    36
    Location:
    2099
    Dear one and all,

    I am looking to take out a Margin Loan to slowly and conservatively leverage into a Peter Thornhill LIC type strategy.

    I currently rent and do not own property (long story...).

    So, I am starting to look around to set up a facility that will allow me to borrow and buy some good quality shares.

    In terms of Margin lending interest rates:-
    Bell Potter = ~7%
    CBA =~ 6.63%
    NAB ~ 6.45% (<250k) down to 5.70% for > $250k
    Interactive Brokers ~ 3.75%. But I'm still trying to understand how their calculations work...

    Would any of you:-
    1) Know of other institutions with competitive interest rate on Margin Loans? and/or
    2) Is there some other way to get my hot little hands on some loot via a loan whilst I don't own property?

    Thanks
    Nick
     
  2. Nick23

    Nick23 Active Member

    Joined:
    17th Aug, 2015
    Posts:
    36
    Location:
    2099
    Westpac - 5.2%
     
  3. asw1

    asw1 Well-Known Member

    Joined:
    22nd Jan, 2017
    Posts:
    49
    Location:
    Sydney
    Redwing likes this.
  4. Goodison

    Goodison Active Member

    Joined:
    12th Oct, 2017
    Posts:
    34
    Location:
    Brisbane
    Another possible option..

    Interest rate schedule - Leveraged

    They have a cheap margin loan option for DIY investors. 4.65% 1 year fixed paid monthly. Variable rate is 5.5% currently.

    Be, very, very careful playing with Margin. Definitely consider seeking expert advice from people, pay attention if they tell you what you may not want to hear.

    I've been noticing multiple postings from people in the forum (not just yourself) seeking margin. That NAB Equitybuilder thread has got a few people openly admitting to using the product for double gearing... if the lenders notice that and identify the individuals they could well pull their facilities as frankly it will be straight breach of the lenders internal compliance policies. This increasing optimisim around margin is probably a good indicator of where we are at in the cycle.

    Please dont take this as me saying I think your doing anything irresponsible.. I'm not, just providing a reminder to tread down this path with real caution.
     
    Froxy and SatayKing like this.
  5. SatayKing

    SatayKing Well-Known Member

    Joined:
    20th Sep, 2017
    Posts:
    2,794
    Location:
    It's all about ME!