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Margin Loans Margin loans fixed v variable

Discussion in 'Finance & Banking' started by tony, 9th Aug, 2007.

  1. tony

    tony Well-Known Member

    Joined:
    20th Jul, 2007
    Posts:
    46
    Location:
    sydney
    Hi

    I have a margin loan with CBA -

    am I right in thinking that there is no actual difference between the fixed rate versus the variable rate.

    In other words the fixed rate is payable in advance (8.75%) whereas the variable is monthly in arrears (9.25%).

    Thus the "difference" is merely the time element of paying in arrears or in advance (whereas "normal" "fixed versus variable" reflect different factors as to the future of money rates in general.

    Tony

    PS I have another question on margin loans but I won't confuse the two questions.