Margin Loans Margin loan interest rate

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by Simon Hampel, 11th Feb, 2007.

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What is your current margin loan interest rate ?

Poll closed 11th Mar, 2007.

  1. 9.5% or higher

    0 vote(s)
    0.0%

  2. 9.25 - 9.49%

    2 vote(s)
    4.9%

  3. 9.00 - 9.24%

    9 vote(s)
    22.0%

  4. 8.75 - 8.99%

    7 vote(s)
    17.1%

  5. 8.50 - 8.74%

    12 vote(s)
    29.3%

  6. 8.25 - 8.49%

    3 vote(s)
    7.3%

  7. 8.00 - 8.24%

    8 vote(s)
    19.5%

  8. 7.75 - 7.99%

    1 vote(s)
    2.4%

  9. 7.50 - 7.74%

    0 vote(s)
    0.0%

  10. less than 7.5%

    0 vote(s)
    0.0%
Page 1 of 2
  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    Just wondering what interest rate everyone is paying on their margin loans at the moment.
     
    Simon Hampel, 11th Feb, 2007
    #1
  2. MJK__

    MJK__ Well-Known Member

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    I'm paying 8.6% at the moment with an LVR at 43%. If I where to buy another hundred I would get a further discount of .25% making it 8.35%

    MJK:D
     
    MJK__, 12th Feb, 2007
    #2
  3. DaveJ__

    DaveJ__ Well-Known Member

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    Is it possible to compare interest rates with amount borrowed? It is a lot easier to negotiate a bigger discount when you have a large or VERY large margin loan. I have found any loan less then $250k and you won't get much, if any discount.

    Thoughts?
     
    DaveJ__, 12th Feb, 2007
    #3
  4. MJK__

    MJK__ Well-Known Member

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    Agreed. I suspect anyone getting below 8% has got a a few mil margined up?
     
    MJK__, 12th Feb, 2007
    #4
  5. gazza

    gazza Well-Known Member

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    Location:
    Canberra
    I have around 600K borrowed at 8.55 with Colonial so am very keen to hear from those who are under 8% - how much have you borrowed and with whom?
     
    gazza, 12th Feb, 2007
    #5
  6. DaveJ__

    DaveJ__ Well-Known Member

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    Posts:
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    I'm fluctuating through $250k+ and arguing (nicely) for around 8.8% from the standard 9.15%. Not sure how successful i will be!:rolleyes:

    (leveraged Equities)
     
    DaveJ__, 12th Feb, 2007
    #6
  7. Simon Hampel

    Simon Hampel Founder Staff Member

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    Leveq will take 0.25% off for every $250K of loan, up to $1m (1% off their standard rate of 9.15% makes it 8.15%) - without question.
     
    Simon Hampel, 13th Feb, 2007
    #7
  8. Bantam Roosta

    Bantam Roosta Well-Known Member

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    1st Jul, 2015
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    Location:
    Canberra, ACT
    My margin loan is for about $20,000 (no mistake) and I get .25% off the variable because I have the wealth package with CBA. I'm paying 8.65%
     
    Bantam Roosta, 13th Feb, 2007
    #8
  9. Simon Hampel

    Simon Hampel Founder Staff Member

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    That's a pretty good rate for such a small loan - well done BR.
     
    Simon Hampel, 13th Feb, 2007
    #9
  10. TwoDogs

    TwoDogs Well-Known Member

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    Location:
    Sydney
    Polls assumes only one rate !

    I have about 8 rates with combination of lenders, fixed and variable, so I took an average.
     
    TwoDogs, 15th Feb, 2007
    #10
  11. MichaelW

    MichaelW Well-Known Member

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    Location:
    Brisbane
    Hi guys,

    I'm shopping around right now and can attest that they all have the same headline rate of around 9.15% but discount from there based on amount invested. Of course, wealth packages and the like change the game as does a bit of honest hard bargaining.

    My borrowings will be between $300K and $700K depending on how much I want to stretch my margin, but 8.6% seems to be the rate I'll be getting unless I push leveraged equities to drop me to 8.4% on a $700K lend. They've already said 8.6% on $500K.

    As an aside, most will lend up to 70% on Navra I've found. That makes it a pretty conservative fund in their opinion which is nice to know.

    Cheers,
    Michael.
     
    MichaelW, 19th Feb, 2007
    #11
  12. Glebe

    Glebe Well-Known Member

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    Location:
    Central Coast NSW
    Thanks for the heads up Michael.
     
    Glebe, 20th Feb, 2007
    #12
  13. bazza52

    bazza52 Member

    Joined:
    1st Jul, 2015
    Posts:
    14
    Location:
    Canberra
    I have 55k with Lift Capital (on Navra's recommendation), rate is 9.0% (which after reading this thread doesn't sound too hot!).

    If I were able to shop around and find a better rate, how painful is it (with fees and time) to switch to a different lender? For a small discount may not be worth it?
     
    bazza52, 22nd Feb, 2007
    #13
  14. Simon Hampel

    Simon Hampel Founder Staff Member

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    It's pretty easy to swap - but with a loan size of $55K, your rate of 9% is pretty much average ... possibly even slightly less than average.

    Always worth shopping around - but check LVRs on offer too ... you may get a slightly better rate at the cost of a smaller buffer due to lower LVRs. You'll have to decide which is more important.

    Put it this way ... 0.25% discount on a $55K loan is worth $137.50 ... not a huge amount in the grand scheme of things.
     
    Simon Hampel, 22nd Feb, 2007
    #14
  15. NickM

    NickM Well-Known Member

    Joined:
    20th Jun, 2015
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    299
    Location:
    Sydney
    8.15% loan at 62K.
    Main reason is because i am also a Fin Planner i get to dial down any commissions i would otherwise receive.
     
    NickM, 22nd Feb, 2007
    #15
  16. Simon Hampel

    Simon Hampel Founder Staff Member

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    mmm ... me thinks I need to negotiate a bit harder!
     
    Simon Hampel, 22nd Feb, 2007
    #16
  17. seaview

    seaview Well-Known Member

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    Location:
    NEWCASTLE
    The guy at www.investdirect.com.au said he can negotiate margin loan rates lower than most planners as he has bulk buying power and rebates most of the commission back to us. A lot with doctors, dentists and engineers use him, so he must be doing something right. Anyway I am about to get him to renegotiate our rate. He was shocked that our Navra planner only got us 8.6% for over 500k from LE and says he can do much better.
     
    seaview, 2nd Mar, 2007
    #17
  18. Jenny__

    Jenny__ Well-Known Member

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    1st Jul, 2015
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    Location:
    Canberra
    mmmm keep me posted. I'm with LE 8.6% on $550k.

    Jenny
     
    Jenny__, 3rd Mar, 2007
    #18
  19. DaveJ__

    DaveJ__ Well-Known Member

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    Posts:
    111
    LE offered the following after a little discussion:

    < 250k = 8.9%
    250k-499k = 8.8%
    500k+ = 8.6%

    Rate automtically adjusts with the margin balance

    DaveJ
     
    DaveJ__, 3rd Mar, 2007
    #19
  20. bazza52

    bazza52 Member

    Joined:
    1st Jul, 2015
    Posts:
    14
    Location:
    Canberra
    bazza52, 5th Mar, 2007
    #20
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