MARGIN LOANS

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Margin Loans Australia

When it comes to margin loans , Australia has a range of competitive rates and offers to help maximise your investment.

What is a margin loan?
Margin loans let you borrow money to invest in the share market and in managed funds.

How does it work?
Your shares are used as security for the loan, allowing you to borrow and invest much more than you can normally afford.

What are the benefits and costs?
Because you have more money to invest, if your shares rise in value, you can obtain higher profits, but at the same, if they drop in value, you will experience bigger losses. There are also tax incentives to using margin loans in Australia to fund your share market investments,

What is negative equity?
This is when your share investment falls below the amount you borrowed, meaning that you need to repay more than the amount of shares you have.

What is the loan to value ratio (LVR)?
To protect against the possibility of negative equity, margin lenders will only lend a portion of your investment amount. This percentage is known as the the loan to value ratio (LVR). For example, if a margin loan's LVR is 60%, borrowing to invest in $20,000 worth of shares, will require a 40%, or $8000 as a deposit.

To find some of the best margin loans Australia has to offer, you can use the comparison tools at RateCity to help uncover the perfect product.

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 Margin Loans 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. See the rating methodology. 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 margin-loan, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.