NAB Equity Builder - too good to be true?

Im pretty sure the max loan size is 25k (unless its recently changed).

 

Sounds familiar.
IB Brokers Margin Account

 

Edit: What @ChrisP73 said.

 

Has anyone recently applied using the forms shared on this thread? Did you get notified ?

 

This is a really short application form. Surely they would ask income details?

 

The linked form isn't for applying to NAB EB, it's for drawing down an existing account.

The application is here and is much longer.

The latest I heard a few days ago is that they are working their way through the EOIs and applications received, but no specific timeframes.

 

That is the reply I have received as well.

 

Anyone used Leveraged Direct Investment loan.
Direct investment loan

I guess one can use similar to NAB equity builder. If you start paying weekly P/I repayment and reduce your loan similar way to NAB Equity Builder. You won't get a margin call as you have reduce your loan...

 

They have a another product which is closer to the NAB EB:

 

6.45% p.a.!

 

4.09% for Leveraged - Investment Loan and 3.75% for NAB Equity Builder

 

It seems that if you are using the investment funds multiplier from Leveraged, that there's two levels of margin payments:

1) a gradual repayment, provided LVR does not hit 95%
2) an immediate payment if LVR hits 95%, with the requirement to reduce it to 85%

The variable interest rate is also quite high at 6.45%, although you can fix this at around 5% which is more reasonable.

I'm assuming Leveraged is an IO loan which gives it a potential advantage over the NAB EB for cash flow. Some quick calcs indicate to me that the immediate payment can be mostly avoided if using 50% LVR on a 75% maintenance LVR (would require a ~50% drop in value assuming no gain in the value of the initial purchase).

Alternatively can go higher LVR but if things begin to fall, make immediate payments to keep the LVR below 95% and pay down the remaining over time.

 

Thanks for sharing correct link. I have put an application today. Now fingers crossed !

 

Apparently, NAB are working on improvements to their NAB EB online platform so that you can apply online for limit increases, Share/ETF/LIC purchases etc.

 

Got this response today.

Thanks for submitting your application.


Please note that we are currently experiencing a very high demand in applications & as a result, the length of the application process is longer than normal

We are prioritising the applications which have been received from those in the expression of interest (EOI) through the online link they received. Applicants who have submitted an EOI then submitted a PDF app or not in the EOI at all will not be fast tracked and put ahead of the rest.

One of our staff will be in contact with you when we can with a status on your app.

 

I did not submit an EOI. I submitted a filled in pdf application form to [email protected] along with a copy of my drivers licence, 2 pay slips and birth certificate on 25/8. Received reply stating due to high volume of applications may take some time. Received approval and access to the facility yesterday 22/10 without any further correspondence. My application was only for a $10k facility as I just wanted to get a feel for how it all worked to begin with.

 

Wow ! You are really lucky !

This is what I got

“There’s at least a minimum of 8 months wait list on the EOI. We will be prioritising the applications received from the applicants who were invited to apply via the EOI first.”

 

I reckon you might get a nice little Christmas ish surprise. Fingers crossed for you.

 

Any luck @Chris21 ?

 

Yes. I got an email from NAB around Christmas asking for more information. They will return to work on 10th Jan - hoping it can get processed after that. Your estimate was correct !! Do you work in NAB