RateCity.com.au
Advertisement

Margin Lender


RateCity Staff

By RateCity Staff

1 min read

To protect against losses from a fall in the investment, margin lenders will only lend a portion of the total investment amount. This percentage is known as the loan-to-value-ratio (LVR). So for example, given that a margin loan’s LVR is 70%, if you hoped to borrow to invest in $10,000 worth of shares, you would need to pay 30%, or $3000 as a deposit.

Because some shares are riskier than others, margin lenders often provide a list of a??approveda?? stocks and margin fund companies.

Tax incentives are another benefit of margin loans, but it is always important to double check the terms of your loan agreement, diversify your portfolio. You can compare margin loans for the lowest rates at RateCity to reduce the risks of your investment.

 

 

Advertisement

Contact a Broker

A broker will compare hundreds of home loans to help find the right deal for you, at no cost.

By submitting this form, I accept Loan Market's terms and conditions, privacy policy and Collection Statement for this service.

Yes, I'd like to get email updates from RateCity

Submit your details now and a local expert will be in touch within a few business hours. They'll compare hundreds of home loans from up to 20 lenders including the big banks to find the loan that's right for you. Book your free appointment today.

Loan Market Pty LTD | Australian Credit License 390222 ABN 89 105 230 019

Compare your product with the big 4 banks, or add more products to compare
Advertisement