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Margin Loan interest rate query

Discussion in 'Other Asset Classes' started by Tom Alaka, 20th Jul, 2016.

  1. Tom Alaka

    Tom Alaka Member

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    22nd Jun, 2015
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    Location:
    Qld
    Hey y'all.

    The interest rate on my margin loan is 7.15% (the current std variable, which appears in the ballpark for other lenders). This is via ANZ on a loan value of $125k, and geared at around 50%.

    I'm otherwise happy with ANZ, but wondering if anyone here has received lower rates for their loans? And if so, how (ie ringing and demanding a better rate) ?

    Thanks,
    Tom
     
  2. tasksta

    tasksta Active Member

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    Location:
    Mornington peninsula
    Not sure about 'margin' loan but ANZ offering me 3.99 fixed 2 years
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Do you have enough equity to secure it against property?
     
  4. Tom Alaka

    Tom Alaka Member

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    Hi Terry. Ideally I would use equity (and will do so in the medium term), though this is tied up for other activity for the time being. Just canvassing for best vanilla margin loan rates, before I query with the lender.
     
    Terry_w likes this.
  5. inspiredbyprop

    inspiredbyprop Well-Known Member

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    Tom, I recently transferred my margin loan across from CBA to ANZ.
    My margin loan with ANZ consists of:
    1. Variable with 300k limit, interest rate is 5.3%
    2. 1 Year Fixed with 30k, interest paid in advance and rate is 4.7%

    I also received 15 free trades (up to 29.90 fee/trade).

    Hope it helps.
     
    Tom Alaka likes this.
  6. Tom Alaka

    Tom Alaka Member

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    Thanks Inspiredbyprop! Good job getting such a good rate !
     
  7. apk

    apk Well-Known Member

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    @inspiredbyprop
    That is a very good rate, I thought westpac rates are good.
    Maximise your potential returns | Westpac Online Investing
     
  8. Casteller

    Casteller Well-Known Member

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    Australians are severely ripped off by margin loan rates. Much more competitive rates offered by international brokers (e.g. 3.25% AUD with Interactive Brokers) are blocked by ASIC to protect local banks. I only pay 1.98% on a GBP margin loan.
     
  9. BingoMaster

    BingoMaster Well-Known Member

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    I looked at some threads on Interactive Brokers on Aussiestockforums - it seems that you can get margin loans at those rates as an Australian if you set up a company, instead of as an individual. Its something I might look into down the track...

    Is Interactive Brokers easy enough to get the hang of? I heard they dont show you how to use the platform at all, but I assume if i check out some tutorials online ill find any answers I might have.
     
  10. Casteller

    Casteller Well-Known Member

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    Their platform is much more technical and a bit hard to get used to for an average retail customer (it has professional traders in mind), but it is not too difficult, you can work it out. Their reports are very good, a lot of detailed info is there. I use the reports much more than the live trader interface for historical info (trader interface more tailored for day traders).

    A normal Oz broker interface like etrade or comsec doesn't have such a differentiation, actually eTrade.com.au reports are completely rubbish and non-existent compared to Interactive Brokers.
     
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  11. BingoMaster

    BingoMaster Well-Known Member

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    Thanks!
     
  12. The Falcon

    The Falcon Well-Known Member

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    I like the conspiracy theory :) Or, it could have something to do with ;

    And that IB run instant instant liquidation for margin - ie. no calls and as such dont meet the ASIC requirements for retail investors..........just maybe. Hence, no issue using IB with a Pty Ltd, or me obtaining those kind of rates from Deutsche Bank in Phillip St (note, not banned to protect local banks ;) but can only lend to sophisticated investors).