Loan to participate in SPP

Hi,
I was wondering if anyone has had experience in obtaining a loan to purchase shares under a SPP?

I can't seem to find any methods to do this via google.

Thanks

 

I don’t believe banks will lend against one’s SPP allocation. Why? What would they do if one’s allocation is scaled back or even worse one misses out?

Depending on the size of the SPP, why not take the money out of a IP offset or take funds out of a LOC or …. Use property as one’s security.

 

Good options if they are available to one. Unfortunately I don't have those options.as my only assets are shares to use as security.

I did just get off the phone with Commsec Margin loans and they have advised they will fund a SPP if I applied.
Not a great interest rate but good to know the option exists.

 

Maybe it is time to start thinking about getting on the property bandwagon .

I believe in investing in both shares and property as they offer different advantages and they both have different limitations (like the one you just found out) .

 

Haha don't get me started.

I've always told myself that I'd buy a PPOR first and then consider investment property. The PPOR option seems to keep getting further and further out of reach, so an investment is on my mind. It is a new challenge trying to invest outside of areas you are familiar with. I'm slowly doing the research. Doesn't help that lately everything seems to be going up and up and up...

 

Some employer offer loans and some dont. Margin loans "might" work but the low % LVR may affect it being viable.

eg they may lend up to 80% for main listed ASX shares plus up to 40% for SPP for a LISTED entity. Some margin rates arent too bad but the LVR issue is a factor or the overall portfolio. And some SPPs dont pay income so...interest is a costbase element. Could even be blended loan if the portfolio is income and non-income producing. Most higher LVR margin loans are income producing and non-income producing is less.