A Bell Potter margin loan offers you the opportunity
to potentially increase your wealth by borrowing to invest in
shares and managed funds. Borrowing to invest, if used as
part of a comprehensive investment strategy, may help grow your
wealth by building a larger portfolio, quicker.
* Last Updated: 4th of February
We offer competitive interest rates with borrowing across a
range of Approved
Securities. For recent updates to the Approved Securities List
please click here.
BenefitDescription Increase the size of your
- Unlock equity by borrowing against existing holdings in your
Dividends and franking credits
- With a larger portfolio you can increase your potential to earn
dividends along with associated franking credits and take advantage
of any capital gains.
- Create a more diversified portfolio without having to sell
- Potential tax deductibility of some or all of the interest on
the loan (depending on your personal tax situation).
- You remain beneficial owner of the stocks in your
portfolio (unless you are in default).
Margin lending also has its risks. While a geared investment can
multiply your returns, it also has the potential to multiply your
the value of portfolio
- If your portfolio falls below a certain value - known as the
loan-to-value ratio (LVR) - you could face a margin call. You could
be required to add more collateral to your loan or to sell down
stock to cover the shortfall in value.
- A rise in interest rates may mean that dividend receipts will
cover less of the financing costs.
- Margin loans are full recourse meaning that if you can't
pay back the loan, other assets owned by you may be sold
to repay the outstanding amount.
Margin lending is not for everyone and should only be used as
part of a wider investment strategy. A Bell Potter investment
Adviser can help you to work out if margin lending is
suitable for you.
As part of the application process you will need to complete a
Statement, which asks questions about your current income,
expenses, assets and liabilities.
Find out more