Margin Loans Margin Loans - Who is the best lender?

What do you think on my idea sim...

I'm prob gonna go with suncorp, and they have they're own platform called 'margin trader' I believe, which is similar to commsec I think.

I can probably monitor using that, but if not, i'd probably just record my buy price, and then monitor the current share prices via commsec. Then basically just use a calculator or spreadsheet to calculate what % i stand at...

Do you think this would be a good way of doing it?

 

I have margin loans with both St.George and Leveraged Equities. With LE, it is very easy to print out a one-page statement from their website, showing all relevant figures. So easy.........
But, I find it just the opposite with StG......seems such a long-winded process to produce and print out a similar set of figures. I end up having to cut-and-paste into a Word document, then print.
Does anyone else have this problem, or am I doing something wrong? Sim...?
Thanks,
Jayar

 

Naw I wouldnt be complicating things, I like to work on the KISS theory.

I'll prob juz monitor them over commsec, all I'd really wanna do is see how much i've gained/lost to know where I stand.

cheers sim.

 

Hi.

Does anyone use Macquaire Prime? It looks like a margin lender, up to 95% lend on some shares but no managed funds, cash account offset, 6.5% interest on +ve cash, 8.95% margin interest.

Craig.

 

Whats +ve cash? I want 6.5% interest!!

 

I think they pay this to you if you have cash in the CMT account.

 

Cash Management T??? account..?

Is that a savings acc or summin...

 

Cash Management Trust I think. A way you can use cash as security rather than putting it into the loan. They take it as security at 100%.

Useful if you have some cash earmarked for personal use so you don't contaminate the margin loan.

 

With theirs you have a cash account that offsets your loan account. If the cash account is more than the loan account (+ve cash) they pay 6.5% interest on daily balance difference.

Craig.

 

So rather than using already purchased shares / mf units as security, you use cash?

 

Why would you have more cash in the account than what you have loaned out? Wouldn't yo use that equity to get a larger loan and re-invest... :s

 

I was merely pointing out their account features. You can use existing shares and cash as security and as Simon pointed out you may have cash you don't want to invest or pollute the loan with but either save interest or earn reasonable interest on.

Which other margin lender has a cash a/c that 100% offsets the loan and pays 6.5% interest if it exceeds the loan in one a/c?

Craig.

 

Whats do you mean by pollute/contaminate the loan..?

 

We're getting a bit off-topic here but simply if you use personal funds to reduce an investment loan you'll annoy your accountant because he will have to apportion the non-deductible interest from the deductible interest, for the life of the loan, when you borrow the personal funds back. It is easier to use the offset account.

Craig.

oh Sim beat me to the punch...

 

does anybody know of, or have a margin loan which you can use Bpay with? Timing of the market with funds would be alot easier (espically with perpetual, where you can just bpay amounts and they get it alot quicker)

 

ANZ does it. Well, they did it for me anyway.

Mark