Margin lenders tend to lend just a portion of the total investment amount to protect against losses incurred in an investment plunge. The percentage that they are willing to lend is the loan to value ratio (LVR). For example, if a margin loan’s LVR is 65%, borrowing to invest in $100,000 worth of shares will require a 35% deposit, which is $35,000.
Margin loans have strict terms and conditions, so make sure you become familiar with them before you apply. Start by comparing margin loans at RateCity to find some of the lowest rates in Australia .