Ok, I think i'm ready to take the plunge into margin loans (for managed funds at this point). Though I still have some remaining questions I would like cleared before I do. Mostly operational questions. 1) Existing Portfolio If I've got an existing portfolio of managed funds worth say $10k. If I use all of this as security for the margin loan and go for an LVR of around 50%....this means I can borrow another $10k giving me a total portfolio of $20k. OK Got that. Q. Though how do I draw upon the $20k??????? and how is the interest calculated if I don't draw upon the entire amount??? Will I still have to pay interest on the whole $20k regardless of how much I use. Also If i choose to go with CommSec (most likely because I hope to use their share trading facility soon)....do i need to transfer my existing portfolio to them or something (i.e. use them as a broker)? If not, then how will they know the value of my portfolio at any point in time in order to determine the value of my portfolio and when to issue a margin call... In other words, do i need to use CommSec as a broker or can I used the drawn down funds (presumebly deposited to my bank account) and invest through sombody like an InvestSmart in order to say on contribution fees...etc. ------------------------- 2) Using the margin loan to invest in many things Can i use the one margin loan to invest in many managed funds? I've got units in both Macquarie Small Companies Growth Trust and BT Imputation Fund and want to use part of the $20k to invest in each (say $8k each for a total of $16k in managed funds) If this is possible, how then would that factor into the LVR calculation and margin calls etc... In the near future I also want to use the remaining part of the $20k (i.e. $4k) to invest in direct shares...is this possible in the one margin loan? ---------------------- 3) Interest - Fixed or Variable? Do you recommend going fixed or variable in today's environment? Commsec currently offers 9.25% variable while fixed is 8.95% for less than 1 year term or 9.15% for 1 to 5 year term. One would ideally go for the fixed option right with the looming rate rise? What's the catch and what does it mean by prepaid interest....do I need to pay this upfront like say a whole year's worth of interest right at the start??? ------------------------ 4) Is CommSec really the best option for me? It's not the best rate out there, 9.25% variable as oppose to NAB which offers 9.15% and BankQueensland at 8.95%?? Though i'm kind a swayed a bit to CommSec because I think that i'll be using their OnlineTrading facility anyway and might as well pay that extra little bit of interest (tax deductible anyway) for the benefit of covenience and an all in one facility???? I currently have a transaction account with the CommBank as well. Thanks for your help.