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Margin Loan for Navra

Discussion in 'Managed Funds & Index Funds' started by Tim, 30th May, 2007.

  1. Tim

    Tim Well-Known Member

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    Hi All,

    I have a margin loan with Commsec but note they do not include the Navra fund. Is anyone else using a margin loan for Navra and if so would you mind telling me who it is through?

    Thanks,

    Tim
     
  2. Smartypants

    Smartypants Well-Known Member

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  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Try the InfoChoice LVR Lookup tool ... although you'd also want to check with the lenders listed to make sure they are still offering margin on the Navra funds ... sometimes the InfoChoice site can be a little out of date.

    I assume you are looking at the Navra AUS Retail fund ?

    ANZ Bank 70
    Bank of Queensland -
    Bendigo Bank -
    BT Financial Group Ltd 70
    Colonial Margin Lending 66.70
    CommSec 70
    Equity Margins -
    Goldman Sachs JBWere -
    Leveraged Equities 70
    LIFT Capital 70
    Macquarie Bank 70
    National Australia Bank -
    Smith Barney Citigroup -
    St. George Bank 75
    Suncorp -


    ... it may be worth asking Commsec directly whether they will give you margin on Navra ... I know a couple of funds who don't list it on their acceptable securities list, but will still give you LVR if you ask nicely (eg Leveraged Equities ... although I've only asked about putting large sums in the Wholesale fund, not retail)

    I currently use St.George Margin Lending for my Navra funds.
     
  4. Tim

    Tim Well-Known Member

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    Hey thanks Smartypants and Sim for the quick reply!

    I will follow up with COmmsec and check out some of the others.

    Cheers,

    Tim
     
  5. gazza

    gazza Well-Known Member

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    I currently use Colonial for both my Navra retail and wholesale holdings
     
  6. Here_To_Learn

    Here_To_Learn Well-Known Member

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    We use Leveraged Equities. Can't seem to find a better rate.

    Leveraged Equities

    Good Luck !
     
    Last edited by a moderator: 30th May, 2007
  7. artgul

    artgul Well-Known Member

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    I had Leveraged Equities till recently. Moving to Suncorp. Suncorp is offering for Navra LVR 75% and 7.85% of interest if prepaid in advance.
    Rgds,
    artgul
     
  8. Tim

    Tim Well-Known Member

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    Gazza,

    I phoned Colonial First State and they indicated they only margin lend on their range of products (which include not just CFS managed funds) but when I asked about Navra they said you would need to take money out of the margin loan to invest with them (so there introduces a collateral issue as CFS would not 'own' the Navra managed fund units, it would have just advanced money which was then used for Navra).

    Dunno if this makes sense but maybe you could let me know how you went about using Margin for Navra??

    Thanks,

    Tim
     
  9. Here_To_Learn

    Here_To_Learn Well-Known Member

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    Variable - $500,000 and over 8.50% p.a.

    I am definitely doing better than the above variable rate Suncorp is offering for $500K and over.;)
     
  10. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Tim, Colonial First State does not offer margin on Navra.

    I think I see the problem ... from my list above, "Colonial Margin Lending" is a different organisation from CFS (or at least, a different part of Colonial).
     
  11. Liverpool St

    Liverpool St Well-Known Member

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    LE


    I looked at the Leveraged Equities website to see how much their prepay in advance interest rates are and then rang LE to see if I could get a discount. My margin loan is over $500K but there was no flexibility. Apparently LE are sending out interest in advance statements to their clients this week. Anyone having any luck negotiating with LE?

    Thanks
     
  12. Tim

    Tim Well-Known Member

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    Cool thanks for clearing that up Sim!

    Tim
     
  13. Glebe

    Glebe Well-Known Member

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    You're leaving things a little late..

    Have you looked at Suncorp?
     
  14. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Leveraged Equities are generally pretty tight about handing out discounts I've found.

    They will happily knock off up to about 0.25% from their standard variable loan rate for each $250K of borrowing (up to a max of 1% off for loans above $1m), but that's about it. For pre-paid in advance, the best I got was 0.1% below the variable rate.
     
  15. Liverpool St

    Liverpool St Well-Known Member

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    LE


    Yeah I suppose. But I have been pretty happy with LE so far. I might have to threathen them with the Suncorp stick. When I was a kid in Sydney (late 50's) flopping around the beaches like an untrained seal there were only 6 millionaires in Australia (in pounds of course). Next year my ML will be over that.
     
  16. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I personally think that customer service and a good LVR is far more important than the interest rate.

    Consider that for a $1m loan, a saving of 0.1% is only $1,000 a year, 0.25% is only $2,500 ... to put this in perspective, at 9% interest, you are paying $90,000 over the year, and if your portfolio is geared to 50% and growing at 15%pa, you're getting $300,000 a year in return ... so a couple of grand either way in interest isn't going to make a lot of difference!
     
  17. Liverpool St

    Liverpool St Well-Known Member

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    LE

    I agree. But now the ML is becoming substantial and the Suncorp LVR for Navra funds is 75percent, well.........
     
  18. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Hey, if you can get a low rate, high LVR and good customer service too ... then go for it.
     
  19. Veritas

    Veritas New Member

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    Following NFS advice a few years ago, I've been with BT Margin Lending: their curent rate (if you have prof. package with Westpac), is 9% variable (not pre-paid). With Westpac loans over 1M, they'll lower it to 8.9% if you ask/demand. Saw Steve recently and he advised switching to ANZ, where NFS clients can secure 8.85%.

    v.
     
  20. bundy1964

    bundy1964 Well-Known Member

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    BankSA rates -

    After I bought my SGB shares I got a 0.25% discount on those rates.

    Westpac do offer a 1% discount if you are a new customer and are borrowing over $1.5m, lessor discount for lower loans transfered. Own 500 WBC shares you can get 0.15% off the standard rate.

    There may be other deals out there that are better too.