Why take margin loans?

You may consider a margin loan if you want to build an investment portfolio quickly, or to be able to increase the amount you can invest. You may also want to multiply your return on investment, take advantage of tax concessions or increase your potential to diversify.
Margin lending may help you reach your goals
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Goal: to invest more

Rather than be limited by access to your own capital, when you take out a margin loan, you use someone else's capital to grow your wealth. You are able to get into the market sooner, and you are able to invest more.

Read more about the multiplier effect.

Goal: to multiply returns

Borrowing money increases the size of your investment, so you can gain even more on positive returns. Of course, a geared portfolio will have a greater potential loss should the investment fall in value.

Check out BT's Margin Loan calculator to test the potential effect of using a margin loan to increase investment returns.

Goal: tax concessions

You may be able to claim tax concessions to margin lending, for example:

  • claim tax deductions for the interest you pay on the loan
  • reduce exposure to capital gains tax
  • use a margin loan as part of your business tax planning.

Check out the potential tax benefits that may apply to your geared investments.

Goal: to diversify

With more money to invest, you can spread more money across more investments. This is a proven method of reducing investment risk without sacrificing long-term performance.

Check out ways to minimise risk.
Hot topic: managed funds make it easy
If you want to put experts at the helm, managed funds are easy and convenient. A managed fund is managed by a professional fund manager and you pool your money with other investors. You don't need much to start, and you can diversify to spread your risk.

Check out managed funds in our 'Managed funds' section.
Calculators
Try our margin lending to help you plan.
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Margin lending
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Find out more about BT's margin lending.
Download a copy of 'Margin lending made easy' (PDF, 557 KB).
Read BT's margin lending case studies.
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's margin loans.