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Margin Loans Macquarie no security investment loans

Discussion in 'Finance & Banking' started by NatMarie73, 8th Feb, 2008.

  1. NatMarie73

    NatMarie73 Member

    Joined:
    16th Sep, 2007
    Posts:
    21
    Location:
    Brisbane
    Hi all,

    I recently found that Macquarie Bank have investment loans for shares and managed funds that seem to work like a property loan - able to borrowy 100%of the investment's value, no margin calls, interest only fixed or variable payments and an interest rate the same as a normal margin loan.

    When reading the PDSs of these loans and speaking to a voice on the phone they sound too good to be true. I was wondering if anyone has used this sort of loan before and what they think of them, particularly in regards to tax deductability of interest.

    For more info on these products see here https://personal.macquarie.com.au/personal/products/loans/investment_loans/inv_loans_summary.htm

    Any first hand info would be great.

    Thanks
     
  2. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    check the interest rate! I would suspect its allot higher than a normal margin loan, or even home loan..

    Plus with these loans, you can't redrew new equity as it becomes avaliable.. so if you need this, be mindful.
     
  3. NatMarie73

    NatMarie73 Member

    Joined:
    16th Sep, 2007
    Posts:
    21
    Location:
    Brisbane
    Thanks CRC - that is one question I didn't ask. Availability to redraw equity is important to me, so I would have to look into these further.
     
  4. Glebe

    Glebe Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
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    Location:
    Sydney, NSW
    Nat after you speak to the big Mac, if you could post the interest rates for margin loan vs this loan that'd be appreciated. Thanks.