Margin loans ratesare often variable, which mean that they are subject to change without notice. If they suddenly increase over a short period, you may find yourself unable to afford repayments, which increases your risk of missing payments or defaulting on the loan. To prevent this, borrowers will budget for interest rate increases of at least 2 percent in the near future.
To protect themselves from borrower default or losses, margin lenders will set a loan to value ratio (LVR), which is the percentage of the investment that they are willing to lend.
Compare margin loans rates across some of Australia's best lenders using our comparison tools to find the cheapest offers to support your share investment.