Margin Loans Margin loan interest rate

Best rate I could get was the NFS one! After ringing around all the different margin lenders and asking for their best rates, it turns out the best I could do was revert to NFS and their negotiated rate for the NavTrade Aus Retail fund.

So for all those investors out there concerned they're not getting the best deal possible through their financial advisor, thing again. If you're in the same boat as me then you're getting well served by the team at NFS.

I'm off to see them this arvo to submit my application to buy back into the NavTrade Aus retail fund and will be doing so through them for the margin loan. They can keep their leading and trailing commissions and consider them well earnt. They're doing right by me so I am more than happy to see those commissions continue to flow.

PS The rate is similar to those posted above with sliding scales. Nothing mind boggling, but better than what I was on as I'm stretching the ML a bit.

Thanks NFS!

Cheers,
Michael.

 

8.15% loan at 62K?

Nick M, how much is the trail component to an advisor usually?

whose is yours with? BT?

 

Hi Mike,

Quick question, with your portfolio level why have you chosen the retail fund over the wholesale version?
I am in the retail fund by necessity!

Cheers, Chris

 

Just a clarification: I spoke to LE and they confirmed that financial advisors get one discounted loan to 8.15% regardless of how much they borrow and it is not because they're scaling back the commissions. This is a one-off offer to financial planners in appreciation of the business they bring LE's way.

So, even if you're a non-financial planner who offers to come in outside of a referall system you will not get this rate. Its got nothing to do with giving away leading and trailing commissions.

Cheers,
Michael.

 

G'Day Chris,

No real reason. I think if you go through NFS as a planner then they put you in the retail fund by default. Performance is on par, and as an existing client I have no additional entry fee so that's a non-differentiator too. I'll be in Retail and am happy with that outcome. I have stretched my ML to $500K to take advantage of the extra .25% reduction on ML rate. But it was NFS that got me a better rate than anything I could source directly, and trust me, I sourced from a lot of different lenders...

Cheers,
Michael.

 

So what is the rate??

 

I get 7.6%, this is on a LOC and the associated margin, although they don't both have to be used together.

This is on phone bokk number figures. I am trying to negotiate a better rate on this particular deal.

An other product, which is a fixed bank bill, I am on 6.8%. I fixed this for 5 year with a review (my end) at 3 years.

So what is the rate that you managed to get Micheal?

Cheers

 

Not nearly as good as yours! I'm at around the mid 8's on the ML component and my LOC is around 7%~ish at the moment. So my average cost of capital for the full amount is around the 7.8% mark-ish...

Cheers,
Michael.

 

Hi Nick, I'm getting a better rate than that with less margin *wink*. But I'm looking to move mine, so it'll probably be around 8.10% soon. PM me (Nick) if you want details, I'm not going to post it on a public forum.

Mark