Margin Loans Margin loan rate increase

With the recent rate increase I was obviously expecting all of my loans to be increased by .25 of a percent but was informed my BT margin loan is incresing by .45 of a percent taking it up to 9.65%.

Starting to get expensive, just hope we don't have too many negative return quarters in the foreseeable future.

Has anyone else had notification from their margin lenders of such an increase. Bit cheeky I reckon.

My margin loan is not massive (approx 250K) and I don't capitalise interest, i.e with each quarterly (Navra) distribution I generally deposit the last 3 months worth of interest back into the loan. As well as this I try to reduce the loan here and there with any extra cashflow.

Anyway, just venting my frustration with BT.

As an afterthought, as BT are affiliated with Westpac, would there be any consideration on their part (BT) to a reduced rate as I have considerable loans through Westpac?

 

I noticed the same thing.. Very cheeky!

BT don't seem to budge on rates, I've noticed other people on the forums have negotiated better rates but BT doesn't care.. I have 900k in Westpac loans as well

So let me know how you go

 

I look at my mgd funds and IPs as a job lot.

I capitalise my interest on the margin loans, and take the distribution and spend it. Sure my LVR on my ML is increasing, however my IP LVR is decreasing to the point where my overall LVR is decreasing.

Capitalising the interest on my Margin loans means ultimately I am spending some of my equity, however my equity is increasing, and I am confident that it will increase enough in my required timeframe to make full time work an option.

So I am trying to enjoy myself along the way.

Therefore while I don't enjoy the rate rises I try not to sweat it either.

 

I've noticed Rams have been increasing their rate by 0.3% instead of matching the 0.25% RBA increase. They have also thrown in an added rate rise. I am not a happy customer, I rang and advised I will be refinancing to try and prompt them to offer me a better deal, but the care factor was pretty low and they showed little concern. I will be ditching them as soon as possible.

 

There is talk around that some of the majors may also do this Sean, so maybe hang on to your hat for a little bit and see how it pans out.

Wouldn't want to be paying a penalty to get out of RAMS and go somewhere else to find they do the same thing.

Assuming your only reason for changing is to get a better rate of course.

 

While not huge, my rate with the cba went from 7.62 to 7.89 in the last rise, so thats .28 instead of .25. Not a huge concern however just proves that its effecting everyone.

 

I'm with comsec and they raised their rates by 25 pts.. however I called them and negotiated a 25 pt discount! so currently I'm paying 9.25%..

I'm considering fixing my rate for 9.25 with comsec for 5 years.. payable in arrears.

 

Macquarie Prime are at 9.2% after the rate rise but before discounts, one of which is a 0.2% discount for refinancing from another ML provider, so that's 9.0%. I'm beginning to come around to this product; I'm planning to sit down with the PDS in the next few days.

 

I'm on Prime now - I have some gripes but the rates are good. Perhaps start a thread and I'll add to it.

 

We already have one:
http://www.invested.com.au/3/macquarie-prime-14122/
The website http://www.macquarie.com.au/prime is pretty clear, but packed with positive scenarios. But I do like the 100% short/long offset.