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Margin lending interest rates
At a glance
Interest rates are reviewed monthly and are subject to change.
| Standard BT Margin Loan | |
|---|---|
| Variable rate of 9.75% | |
| Interest can be pre-paid on fixed rates for terms of 3, 6, 9 or 12 months. | |
| No transaction fees. | |
| Discounts available on variable and pre-paid interest rates depending on loan size. | |
| Interest charged to the account on the last day of the month. | |
Pre-paid interest
Pre-paid interest enables you to manage your cash flow and lock in an interest rate for a fixed period of 3, 6, 9 or 12 months. Pre-paying interest before the end of the financial year can also be a tax-effective investment strategy.
Pre-paid interest is not refundable.
| Period | Standard BT Margin Loan Prepaid Interest Rates |
|---|---|
| 3 months pre-paid | 8.10% |
| 6 months pre-paid | 8.10% |
| 9 months pre-paid | 8.10% |
| 12 months pre-paid | 8.00% |
Fixed interest
Fixed interest enables you to manage your longer term cash flow and lock in an interest rate for a fixed period of 2, 3, 4 or 5 years. Pre-paying the Fixed interest before the end of the financial year can also be a tax-effective investment strategy.
Fixed interest is not refundable
| Period | Standard Fixed Rate - Paid Annually in Advance | Standard Fixed Rate - Paid Monthly in Arrears |
|---|---|---|
| 2 Years | 8.30% | 8.60% |
| 3 Years | 8.40% | 8.70% |
| 4 Years | 8.40% | 8.70% |
| 5 Years | 8.40% | 8.70% |
Interest capitalisation option
If you choose not to pay the interest, your unpaid interest is added to your loan balance, increasing the total amount that you owe and the possibility of a margin call.
Paying interest regularly helps to prevent your gearing level from increasing and thus reduces the possibility of a margin call.
Transaction fees
A Standard BT Margin Loan does not incur transaction fees.