Margin Loans Margin Loan - A little help please

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by Sk3tChY, 10th Aug, 2007.

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  1. Sk3tChY

    Sk3tChY Well-Known Member

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    Ok well this is my first margin loan, so im not really 100% sure on how this works.

    Basically im setting up with Commsec, but before I actually borrow anything, set out how much interest I want to pre-pay etc... I need to apply for a credit limit or something.

    Now initially I'll prob want $24,500 loaned out, because thats all I have the equity for at the moment. But in about 2 months time, i'll hope to be borrowing $49,000. I'll be selling my car, getting my tax back etc, so by this time i'll have the equity.

    What credit limit should I apply for?

    I have a full-time job etc, if that makes any sort of different in this case.
     
    Sk3tChY, 10th Aug, 2007
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Apply for as much as you feel comfortable with for now ... the limit is arbitrary and has no impact on what you can do in the short term ... just serves as an upper limit. The margin lender may have their own internal flags for higher limit requests which might invoke a request for servicability checks, but that's probably at a pretty high limit.

    Perhaps request $500K or $1m and see what they say ? You can't actually borrow this much without providing enough security to match - so there's no risk to them or you.
     
    Simon Hampel, 10th Aug, 2007
    #2
  3. Simon

    Simon Well-Known Member

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    Does a big limit appear on your CRA?

    Going $500K, even if undrawn, may hurt when applying for a mortgage?

    I got to admit I am not sure what info Margin Lenders put on one's CRA. Does anyone know?
     
    Simon, 10th Aug, 2007
    #3
  4. Sk3tChY

    Sk3tChY Well-Known Member

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    Hypothetically if I had $10,500 worth of CBA shares. And the max LVR was 70%

    How could I apply for more than $24,500 ...?
     
    Sk3tChY, 10th Aug, 2007
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  5. Sk3tChY

    Sk3tChY Well-Known Member

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    CRA??

    Come online smack, save meeee!
     
    Sk3tChY, 10th Aug, 2007
    #5