Access 2,500+ approved investments - includes ASX listed shares, ETFs, international listed shares and unlisted managed funds.
Variable rate margin loan for investment in over 1000 approved shares, as well as hundreds of retail and wholesale funds.
Variable rate margin loan for investment in over 1000 approved shares.
Variable rate margin loan for a range of investment solutions.
Are you looking for a loan to invest in shares? Perhaps a margin loan, also known as an investment loan, could offer what you want. Margin loans offer a way to invest on the stock market by borrowing the money you need from a lender.
While margin loans function much like personal loans or lines of credit, where you pay interest on the money you borrow, there are some differences. Margin lenders often limit how much money you can borrow compared to the value of the shares in your portfolio – this is the Loan to Value Ratio (LVR). This is how lenders measure your risk, and make sure you are not over-borrowing to buy shares.
Investing in the share market and obtaining a margin loan can be risky, so be sure to do your research properly. Whether you intend on using the money to purchase blue chip shares, or you're taking a chance on a new business, make the most out of your investment by thoroughly researching all aspects of margin loans.
It is understandable to want the lowest rate when searching for a margin loan. The less interest you have to pay on the margin loan, the higher the potential net return of your investment.
With a margin loan, you generally don’t pay down the debt provided you maintain the agreed level of equity in your account. With this type of loan, you often only need to pay the interest on the amount of money you use.
Much like other types of variable loan, variable rate margin loans have interest rates that may rise or fall at the discretion of the lender. Whether the interest rate is variable or fixed, choosing a low rate means paying less in interest, so you can potentially make more profit from your investment.
Fixed margin loans can be very useful when you are investing on the stock market, as while the value of your shares and returns may move up and down, your margin loan repayments will remain the same throughout the term of the loan. Many people find it reassuring to have such stability and security in their investment portfolio. Also, knowing that your monthly repayment will not rise at an inappropriate time allows you to accurately budget your repayment strategy.
However, it’s important to remember that fixed rates may be more expensive than variable rate margin loans, simply due to paying for the security of your interest rate remaining the same over the life of the loan term. If you are happy to potentially pay more for that peace of mind, make sure you compare online to get the best fixed margin loan possible.
You can rate margin loans in a variety of different ways.
Some of the margin loan features to compare include:
Looking at margin loan features and benefits can help you to benchmark the available options, determine which margin loans may suit your needs, and help you make the right choice for your finances.
^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.