Margin Loan rates - What rate are you paying ?

Happy New Year everyone !

Thought I'd check in to see what interest rates other folks are receiving for their Margin Loans in '08.

In my case I just received a .25% increase and am now in the mid 8's.

 

9.25% for me with comsec .25 discount to their normal rate.

{edit}

sorry 9.4% is my rate

however it seems comsec is getting nervous as I'm getting SMS's every couple of days to keep a eye on my margin loan due to 'market volatility'

 

comsec base loan is 9.65%... so you must have some decent borrowings with a nice discount to be that low....

 

Balance under 1.5Mill.

 

9.05% with ANZ.

They just rang me and offered another 10 basis points off my current rate because they were feeling nice. Didn't even have to ask for it...

Cheers,
Michael.

 

but you have a very large loan balance with them though Michael!

 

Only $500K mate, nothing too serious...

Cheers,
Michael.

 

I'm sitting at $300k atm. I think Sim here is the man with 7 figures!

 

9.60 with BT. Initial margin loan was 300K but now sitting at around 250K.

Don't want too many more rate increases.

 

With Suncorp,

Fixed > 500k 7.7%

Variable 25k 9.0%

 

Wow ... This must have been a while back since you locked in.

Check out their new rates here Interest Rates Personal Deposit : Suncorp : Everyday Banking, Cash Investment Accounts, Term Deposits

What length of time did you fix for ?

 

Suncorp discount from March - Jun 30 each year.

I'm at 7.65% with a loan of $550k. Its fixed for 12 months from Jun 30, 2007 to Jun 29, 2008. Not looking forward to renewing it.

 

Glebe, you definitely got a good deal ! So I should wait until March then for their discounts ?

 

Hi Carl,
Same as Glebe. Fixed just before the end of the last financial year. Payed a year in advance and capitalised, in order to reduce my last tax bill. Was a wise move in retrospect however it has really had a detrimental effect on my LVR which has rocketed as a result,
Regards,
Lorrimer

 

I didn't capitalise, but my LVR is 60% anyway, and I am going to find it tough to cough up $46k or so again. Got some saving to do between now and June!

 

What do you mean by payed in advanced AND capitalised?

I understand that if I pay for next years interest before 1st July then I can claim that this year - however where does the capitalising come in?

Is capitalised interest tax-deductible?

 

Ah ok - so you drawdown the ML to pay the interest on the same loan - because straight capitalising wouldn't be tax deductible?

 

Sorry to divert the thread a little, but this will no doubt be answered very quickly...
Say I have ML with $100k borrowed, with prepay interest rate 9%.
So I'd pay $9k for interest before June 30. But if I capitalise within the same ML, do I have to prepay more interest to account for the variation from the standard interest calculation (eg effective rate 9.4%)? Or does the ML provider expect me to pay monthly for the variation? Or do I just get away with it? (That would be a very nice justification for capitalising, rather than tax avoidance!)