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Margin Loans Refinancing Margin Loan

Discussion in 'Finance & Banking' started by hiflo, 23rd Nov, 2007.

  1. hiflo

    hiflo Well-Known Member

    Joined:
    3rd Jun, 2006
    Posts:
    68
    Location:
    Sydney, NSW
    Hi guys,

    My fixed margin loan with ANZ is just about to expire and am thinking of getting a refinance possibly with another institution. I am currently looking at the leverage rate that they are offering for the securities I am holding, and the interest rate.

    I called ANZ over the phone for a further discount rate, (I am on standard variable less 0.25%, I think around 9.4%) and was not successful.

    The institutions that I am considering are: Comsec & Bank of Queensland or Colonial (I'll do more research). I've looked at Leveraged but it did not have Navra as its listed securities.

    I am thinking of asking to borrow around $200-250K(loan limit) and leave a margin of 50K for future margin call.

    What is the best way to approach the bank and ask for a better discount?
    I've called Comsec this morning and the reply that I got was first make an application then we will decide whether to give you a discount or not.

    Is it better that I write a fax with the amount of security that I am holding to the institutions I am interested? Or is the amount that I want to borrow too small?
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    Unless your loan size is above $250K, you won't get much joy with discounts ... and even then, most lenders are only offering around 0.25% discount per $250K borrowed (up to a max 1% off for loans above $1m).

    I've just added some LVR support to Compare Funds - which might help you compare margin lenders for your portfolio. I'm checking all of the margin lenders daily for updates, so it should be pretty accurate.

    I'm still adding the LVR comparison features - so it's not all there yet ... but the individual fund profiles do show all available LVRs on the profile page.

    It might still be worth contacting LevEq and asking them nicely if they will lend against Navra ... they were happy for me to increase my exposure to Navra after they reached their limit a while back, and I recently refinanced my Navra holdings back to LevEq from St.George and they were happy to accept the security. Not sure how they will go for new loans, but it's worth asking. They offer 70% on the Australian funds.
     
  3. voigtstr

    voigtstr Well-Known Member

    Joined:
    24th Jan, 2007
    Posts:
    679
    Location:
    Hobart
    Hi Sim. I like the margin loan comparison feature. Awesome way to find out which lender will give the largest margin (and therefore the largest buffer if I stick to 50%) for the two funds I have.

    Heres a suggestion for the site (which is becoming an awesome tool) could you provide a url to the margin lenders (so that lazy people like me dont have to go google them :) )
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    I already had the information in the database, just hadn't displayed it anywhere yet. I've added links to the margin lender websites in a number of locations.