Margin Loan Interest

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.

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.