A Bell Potter margin loan offers you the opportunity
to potentially increase your wealth by borrowing to invest in
shares and managed funds. Borrowing to invest, if used as
part of a comprehensive investment strategy, may help grow your
wealth by building a larger portfolio, quicker.
Today's Rates
| Loan Amount($) |
Rate |
| <
100,000 |
8.85% |
| 100,000 -
250,000 |
8.75% |
| 250,000 -
500,000 |
8.65% |
| 500,000 -
750,000 |
8.45% |
| 750,000 -
1,000,000 |
8.25% |
| 1,000,000 -
1,500,000 |
8.05% |
| >
1,500,000 |
7.95% |
Benefits
We offer competitive interest rates with borrowing across a
range of Approved Securities. For
recent updates to the Approved Securities List please click
here.
BenefitDescription Increase the size of your
investments
- Unlock equity by borrowing against existing holdings in your
portfolio.
Dividends and franking credits
- With a larger portfolio you can increase your potential to earn
dividends along with associated franking credits and take advantage
of any capital gains.
Diversification
- Create a more diversified portfolio without having to sell
existing holdings.
Invest tax-effectively
- Potential tax deductibility of some or all of the interest on
the loan (depending on your personal tax situation).
Ownership
- You remain beneficial owner of the stocks in your
portfolio (unless you are in default).
Risks
Margin lending also has its risks. While a geared investment can
multiply your returns, it also has the potential to multiply your
losses.
| Risk |
Description |
| Fall in
the value of portfolio |
- If your portfolio falls below a certain value - known as the
loan-to-value ratio (LVR) - you could face a margin call. You could
be required to add more collateral to your loan or to sell down
stock to cover the shortfall in value.
|
| Interest
rate increases |
- A rise in interest rates may mean that dividend receipts will
cover less of the financing costs.
|
| Full
recourse |
- Margin loans are full recourse meaning that if you can't
pay back the loan, other assets owned by you may be sold
to repay the outstanding amount.
|
Suitability
Margin lending is not for everyone and should only be used as
part of a wider investment strategy. A Bell Potter investment
Adviser can help you to work out if margin lending is
suitable for you.
As part of the application process you will need to complete a
Suitability
Statement, which asks questions about your current income,
expenses, assets and liabilities.
Find out more