What is Margin Lending?
A Margin Lending facility allows you to borrow money to invest in shares and managed funds, using your own money or your existing portfolio as security. This helps you to increase the size and diversity of your portfolio.
The amount that you can borrow is determined by the securities in your portfolio, their Loan to Value Ratio and a credit limit based on an assessment of your financial position.
Leverage your assets
You can use your existing cash, shares or managed funds as security for a margin loan. You supply assets as security and the lender loans you the money for further inevestment purchases. A lending ratio also known as Loan to Value Ratio (LVR), applies to each security. This is the proportion of a security's market value that we will lend you.
Unlock your investments
The sum of your investments market value multiplied by their respective LVRs determines your borrowing limit. This is calculated daily. If you add approved securities to your portfolio, your borrowing limit increases.
Flexible interest options
Flexible interest arrangements are available including monthly and annual payments. Interest may be paid by direct debit, direct credit or internet transfer payments, BPay or allowed to be capitalised to your loan.
Interest options differ from provider to provider. Check out the interest payment options offered by BT Margin Lending.
