Our Margin Lending products are designed to provide solutions for all stages of the investment cycle with an emphasis on simplicity.

A margin loan allows clients to borrow money to invest in listed securities or managed funds using their existing cash, shares or managed funds as security.

With Margin Lending, clients have the ability to invest a larger amount than they could using only their existing investment capital.  By increasing the value of their investments they also have the potential for higher and accelerated returns*.

BT Margin Lending offers the following loan types:

BT Margin Loan

This product includes lump-sum and instalment gearing on a stand-alone basis, and can also form part of the gearing solution available through BT Wrap & Asgard.

Features:

  • Highly competitive interest rates
  • Flexible payment solutions
  • Access to a wide range of equities and managed/investment funds supported by a majority of investment platforms in the market
  • Traditional and technology-based marketing solutions to help promote your offering
  • A comprehensive website providing online applications, client information, a full range of gearing tools & calculators, case studies and more


Benefits

Margin Lending may help your clients to better manage their tax position:

  • Interest paid on a margin loan may be tax deductible
  • Interest can be prepaid which allows your clients to lock in an interest rate at the time of prepayment, without being exposed to interest rate increases which may occur later. Interest may be prepaid up to 12 months in advance.
  • Your clients are able to borrow against an existing portfolio of shares and managed funds. This allows them to increase their investments without having to sell their existing portfolio and potentially triggering a capital gains tax liability.

For more information visit BT

*Whilst gearing can magnify your gains it can also magnify your losses

Westpac BlueChip20

A geared investment product that allows investors to purchase a market weighted portfolio of shares in Australian blue chip companies. This is achieved by investing a lump sum and then regular monthly contributions which are used to purchase shares in the top 20 blue chip Australian companies.

Features

  • Separately managed account giving you beneficial ownership of stock
  • Maximum 50% gearing on regular contributions
  • Low minimum investment requirements ($2,500 lump sum and $250 per month)
  • Low brokerage fees.  50 cents per $1,000 excl. GST
  • 24/7 online access to comprehensive investment and tax reporting
  • No entry or exit fees and low ongoing costs
  • Flexible interest payment options


Benefits

  • A diversified portfolio with modest levels of gearing
  • Regular ongoing investments provide 'dollar cost average' into the market thereby reducing timing risk & the effects of volatility
  • Present dividend income covers the majority of borrowing costs
  • Low brokerage & low ongoing costs ensure efficient share market investing
For more information visit: http://bluechip20.westpac.com.au/

This information is of a general nature, has been prepared without taking into account your objectives, financial situations and needs. This information does not constitute any recommendation as to the suitability of any product.  Because of this, you should consider its appropriateness, having regard to your objectives, financial situation and needs and, if necessary, seek appropriate professional advice.  You should consider any available disclosure documents or product disclosure statements before making any decisions about whether to acquire a financial product.

Derivative products and leveraged products involve an element of risk and aren't suited for all investors.  Trading in derivative products and leveraged products has the potential to magnify both your profit and loss.  You should only acquire or trade in such products if you are confident that you understand them and the risks involved and have adequate financial resources.  

All interested investors should seek professional advice on the taxation implication of investing through margin lending and should not rely on this information, which should be used as a guide only.