Discussion in 'Finance & Banking' started by Simon Hampel, 11th Feb, 2007.
Just wondering what interest rate everyone is paying on their margin loans at the moment.
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%
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.
Agreed. I suspect anyone getting below 8% has got a a few mil margined up?
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?
I'm fluctuating through $250k+ and arguing (nicely) for around 8.8% from the standard 9.15%. Not sure how successful i will be!
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.
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%
That's a pretty good rate for such a small loan - well done BR.
Polls assumes only one rate !
I have about 8 rates with combination of lenders, fixed and variable, so I took an average.
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.
Thanks for the heads up Michael.
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?
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.
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.
mmm ... me thinks I need to negotiate a bit harder!
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.
mmmm keep me posted. I'm with LE 8.6% on $550k.
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
Do you mean investorsdirect.com.au?
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