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Margin Loans Best Pre-paid Margin Loan Interest rate?

Discussion in 'Finance & Banking' started by Rod_WA, 23rd Apr, 2008.

  1. Rod_WA

    Rod_WA Well-Known Member

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    MQ Prime have released a pre-paid interest rate for 12 months from 30 June 2008 at 9.15%.

    Just thought I'd open a thread to compare rates before the end of financial year.
     
  2. Seamus

    Seamus Member

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  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    We haven't necessarily seen the heavy discounting start yet - often comes during late May.
     
  4. Glebe

    Glebe Well-Known Member

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    I got my letter from Suncorp, it was only about .5% off standard. Nothing special this year, as expected.
     
  5. Redwing

    Redwing Well-Known Member

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    I had a letter from Suncorp; lock in before 14 MAY and get 0.70% off the 12 Month rate
    $20k-$500k 10.15% (Discount 9.45%)
    $500k -$1M 9.95% (Discount 9.35%)
     
  6. Glebe

    Glebe Well-Known Member

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    yep, that was it.
     
  7. GeoQuack

    GeoQuack New Member

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    MQ Prime list 9.45% on their website now. Have their rates gone up or do you know something that I don't?

    Peter
     
  8. eddyl

    eddyl Well-Known Member

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    When does the heavy discounting usually begin? Am I correct in saying you have to sign up before june 30 often to get the discount?
     
  9. crc_error

    crc_error The Rule of 72

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    Macquarie have a reputation to jacking up costs on a whim. Then they have a reputation to send out money demands 12 months after you finish doing business with them.

    Dont deal with this mob..
     
  10. Chris C

    Chris C Well-Known Member

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    Can I ask, if you are pre-paying the interest on the loan and investing in good investments, do you need to be able to prove you have the income to service the load as well?

    Or is it more of a situation where, if you have $10,000 and are willing to prepay the interest they will give you $40,000.
     
  11. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Margin lenders typically have pre-defined borrowing limits, and so long as your loan is less than the limit - they will happy lend you as much as you like, up to the maximum LVR for your portfolio.

    These limits vary by lender, but you typically won't have trouble until you get well over the $1m mark. At one stage I had a $2m margin loan with no proof of income asked for.

    Some lenders ask you to specify a borrowing limit during the application process - but this is usually arbitrary and can be increased by a simple written request.
     
  12. Chris C

    Chris C Well-Known Member

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    I have started to do some mor research on Margin lenders of late adn their interest rates, adn too date MQ prime still looks significantly cheaper than most other lenders at 8.95% 8.95%.

    The next best I have found has been ComSec and BT at 9.75% is there a reason why MQ Prime is so much lower?