BT offers different fee structures for its two margin loans. The BT Margin Lending_Online loan fee structure can apply only when you link a BT Margin Loan to a Westpac Securities account (opens Westpac's site in a new window)

At a glance

Interest rates are reviewed monthly and are subject to change.

Standard BT Margin Loan	BT Margin Lending_Online loan
Variable rate of 9.49%	Variable rate of 9.29%
Interest can be pre-paid on fixed rates for terms of 3, 6, 9 or 12 months.	Interest can be pre-paid on fixed rates for terms of 3, 6, 9 or 12 months.
No transaction fees.	$0 or $5 transaction fee, depending on loan balance size and number of transactions.
Discounts available on variable and pre-paid interest rates depending on loan size. Discounts cannot be combined, the greater of any discount will be applied.
Interest charged to the account on the last day of the month.

Use the comparison calculator to decide which fee structure suits your investment requirements and apply now for the standard BT Margin Loan or apply for the BT Margin Lending_Online loan.

Lending ratios (LVR)

A lending ratio or loan-to-value (LVR) is assigned to each investment in your loan portfolio.  The lending ratio is the percentage of the investment’s market value we will lend you. BT Margin Lending will lend between 35% and 80% of the market value of over 1,400 listed shares and managed funds.

• July 30th 2010 LVR Changes (PDF 29KB)
• Approved listed securities (PDF 28KB)
• Approved managed funds (PDF 121KB)

Flexible interest payments

• Choose the amount of interest you pay and when you pay.
• Pay by direct debit facility, BPAY, cheque, or capitalise interest on your loan.

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	BT Margin Lending_Online Loan Prepaid Interest Rates
3 months pre-paid	8.55%	8.35%
6 months pre-paid	8.80%	8.60%
9 months pre-paid	8.90%	8.70%
12 months pre-paid	8.95%	8.75%

Note: The Margin Lending_Online product offers a discount of 0.20%. If you are eligible for more than one discount BT will apply the greater of the two discounts to your interest rate, discounts can not be combined.

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	9.75%	9.85%
3 Years	9.75%	9.85%
4 Years	9.85%	9.95%
5 Years	9.95%	10.05%

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

Transaction fees apply to the BT Margin Lending_Online loan that is linked to a Westpac Broking trading account. A standard BT Margin Loan does not incur transaction fees.

Loan balance*	Transaction** fee
$250,000 and above	Unlimited free transactions
Loan balance from $20,000 to $249,999	5 free transactions per month, then $5 per transaction
Loan balance under $20,000	$5 per transaction

* Loan balance is defined as the average monthly loan balance.
** A transaction is defined as a CHESS purchase, CHESS release, CHESS sale, CHESS transfer, cash advance, Managed Fund application and redemption.