Borrow to invest
By using existing cash, shares or managed funds as security for your client's loan.
Diversify your portfolio
Choose from a competitive list of over 2,100 shares and managed funds with LVRs between 35% - 75%.
Potential tax benefits
Margin lending can be tax effective and interest paid on a margin loan is generally tax-deductible.
Flexible loan structure
There are no transaction limits, no minimum amounts for cash advances, loan draw-downs or repayments.
Apply for a BT Margin Loan
Apply as a Wholesale Client
To be eligible for a margin loan, the applicant must be able to fund the obligations under the loan including any interest, fees and charges. The borrower should have an understanding of how the margin loan works and the ability to withstand economic cycles and market volatility.
Under the Corporations Act BT Margin Lending must conduct an unsuitability assessment of each retail applicant for a BT Margin Loan.
Margin lending can be tax effective and interest paid on a margin loan is generally tax-deductible. Interest can be paid up to 12 months in advance and clients may be able to get an additional tax deduction for the prepaid interest in the current financial year (subject to your ability to satisfy the tax prepayment rules).
By borrowing against a client's existing portfolio, the client increase the size of investment without having to sell their existing portfolio and potentially create a capital gains tax event.
Margin Lending allows your clients to enhance their potential for wealth creation by making larger investments than would be possible using their own funds and increasing their potential returns.
For investors looking to increase yield, combining high dividend yielding investments with conservative levels of gearing may enable investors to construct positively geared investments where dividends are used to offset interest costs on the loan amount.
All investments are subject to risk. Some of the main risks associated with taking out a margin loan include:
BT Margin Lending offers both variable and fixed interest rates. Interest rates are reviewed monthly and subject to change. See the current variable and fixed interest rates.
See the current variable and fixed interests rates.
BT offers LVRs on over 2,100 shares and managed funds with LVRs between 35% - 75% (view approved securities). We determine what the LVR is for each security, and may change it at any time, including reducing it to zero. The maximum amount of money that your client may borrow will also depend on:
Investors can qualify as a Wholesale Client if they can provide us with a copy of a certificate issued by a qualified accountant (as defined in the Corporations Act) that states that they:
Other details for Wholesale Clients: