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Who is your margin lender?

Discussion in 'Managed Funds & Index Funds' started by tropic, 1st Nov, 2007.

  1. tropic

    tropic Well-Known Member

    Joined:
    13th Sep, 2006
    Posts:
    131
    Location:
    WA
    I am looking at other investment opportunities like commercial property etc. This can happen anytime, I m not sure when but I like to get ready.
    The plan is to get a property and borrow from my bank. It's the easiest and cheapest way I would think.
    But in case my bank doesn't lend me the money or only willing to lend less than the amount needed my other option would margin lending.
    I have never done margin lending and prefer not to (old school way of thinking maybe).
    Can you share with me who your margin lender is?
    What is the current IR you are paying?
    In general how long will it takes to get one setup and ready to use?

    One other important thing, if say I transfer 500K of share to a margin lender and I want to borrow 300K and the shares has LVR of 70%.
    Can I take the 300K out to pay for a property that I bought?
    I want to use it as a borrowing facility for other purpose and use the shares as colleteral.
     
  2. crc_error

    crc_error The Rule of 72

    Joined:
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    Location:
    Melbourne, VIC
    I use comsec, and pay 9.25 however I'm going to be calling them soon to negoiate a lower rate as my borrowings have grown over the years.

    If you transfer 500k shares and withdraw 300k, you would have a LVR of 40%. if you withdraw 500k, that would be 50% LVR. You can withdraw cash from your margin loan to buy IP, but I would only withdraw enough to satisfy the deposit required as you want the rest of the equity for other things.. like a buffer etc.
     
  3. bundy1964

    bundy1964 Well-Known Member

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    22nd Dec, 2006
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    Location:
    Adelaide, SA
    Banksa paying 8.9% capitalised, still got one 0.25% drop to go if/when I get enough of a loan. I do get a 0.25% discount on their standard rate for being a SGB shareholder either that or they like me......

    I was looking to put my commercial loan on my margin account as it would be less hassel and probably cheaper rate too.
     
  4. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Location:
    Sydney, NSW
    ANZ and a better rate than either posted thus far by quite a few basis points. But I know of others here on better rates than me... ;)

    Cheers,
    Michael.
     
  5. Simon

    Simon Well-Known Member

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    Location:
    Newcastle
    I use leverage Equities at 8.8%.
     
  6. evisional

    evisional Well-Known Member

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    23rd Aug, 2007
    Posts:
    51
    Location:
    Melbourne
    I use comsec cos my investments is in their managed fund list.

    9.25%pa variable loan
    8.95% fixed loan
     
  7. artgul

    artgul Well-Known Member

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    Location:
    Sydney
    Suncorp: 7.85% pa in advance.
     
  8. crc_error

    crc_error The Rule of 72

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    Location:
    Melbourne, VIC
    gee that is cheap!
     
  9. Glebe

    Glebe Well-Known Member

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    Location:
    Sydney, NSW
    likewise..
     
  10. pjb89

    pjb89 Active Member

    Joined:
    1st Sep, 2005
    Posts:
    29
    Location:
    Abu Dhabi
    Hiya

    ANZ for me....but I am only a babe in the woods compared to most of the players who frequest this site....

    Pedro
     
  11. tropic

    tropic Well-Known Member

    Joined:
    13th Sep, 2006
    Posts:
    131
    Location:
    WA
    Suncorp 7.85% prepaid is cheap. I am paying 7.65 for my home equity loan.
    This year I might need to do prepaid because I sold Alinta and Multiplex shares, both were taken over.

    ANZ margin lending variable rate is 9.4% according to their site.
    That is expensive.