Margin Loans Macquarie no security investment loans

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

 

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.

 

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.

 

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.