Margin Loan Interest

RateCity Staff

By RateCity Staff

1 min read

Margin loan interest rates calculate how much you will need to repay on your loan throughout its term. Lower margin loan interest rates will require cheaper repayments, which will help you gain higher profits from your share market investment.

A responsible budget will take into account a possible margin loan interest rate rise of at least a 2 percent. This will shield you from unexpected jumps in interest rates, and protect you from the possibility of default in the future.

Because some investments are either cashed in or transferred after a short period, many borrowers choose to only repay interest on their margin loan. This greatly reduces the amount of your repayments, but means that you will never gain equity through repaying your loan.

Another important aspect of margin loans is the loan to value ratio (LVR), which calculates the amount of your initial deposit.

Compare margin loan interest rates on our comparison page to find some of the lowest rates and some of the best features for your share investment.

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