What is a Margin Loan?
A Margin Loan lets you borrow money from the bank to invest in Shares or Managed Funds. It can be an effective way to build wealth, and may allow access to a range of tax benefits. Of course, there is always an element of risk in investing in markets – if your stocks go down in value, you could end up losing money. You should be aware of the risks of trading and your own tax circumstances prior to applying.
Current Interest Rate
3, 6, and 9 month fixed terms, for $20,000 to $499,999 loan
- No minimum loan balance
- No establishment or application fees for individuals
- No account keeping fees or ongoing costs, regardless of whether you're an individual, company, or trust
- Interest payments may be tax deductible, so speak to your financial or tax adviser
- With over 2000 different securities, you have a choice of a wide range of investments
- Attractive Loan to Value Ratios (‘LVR’) on all acceptable securities
- 5% buffer on Shares and 10% buffer on Managed Funds above the LVR before your account goes into margin call which may assist to protect your portfolio against short term volatility
Reward vs Risk
With more money to invest, your potential to earn greater returns and grow your portfolio is maximised. It is important to note that while a margin loan enhances your potential for growth it can also magnify your losses.
When investing with the funds from a Suncorp Bank Margin Loan, you are only able to invest in approved shares or managed funds.
You can receive a discount on your loan when you include it in the Home Package Plus
Margin Loan Fees
- Suncorp Bank Margin Loans have no establishment or application fees for individuals.
- Companies and Trusts are required to pay $139 and $165 for company search or trust vetting fees, respectively.
- Once your loan is set up, there are no account keeping fees or ongoing costs, regardless of whether you're an individual, company, or trust.
Savings Gearing Plan
Get the benefits of a margin loan without the commitment of lump sum borrowing with a Savings Gearing plan.
As you invest cash to your Savings Gearing account every month, we match your investment with loan advances to your Margin Loan, so you can increase your investment potential.
Savings Gearing is perfect for those just starting out, or wanting to make their money work harder.
- Minimum initial balance of $1,000 (subject to Fund Manager requirements)
- Deposit at least $250 per month (subject to Fund Manager requirements)
- We match that deposit amount with a loan advance of the same amount
- You have a buffer of 5% for ASX Listed companies and 10% for Managed Funds above the maximum lending ratios applying to your securities
- Use an existing investment portfolio or cash as security
If you would like a Savings Gearing plan, we will set you up with a Wealth Cash Management Account, which is where you need to deposit your money. This money is then used as security against your Margin Loan.
Applying for a Margin Loan
Simply print out and submit the Suncorp Bank Margin Loan Application form.
If you’d like to use us for Share Trading, but don’t have an account as yet, you can apply for both at the same time. Simply fill out the linked application form linking your accounts so you can begin trading as soon as we receive your security.
Processing your application
Loans are assessed against our current credit criteria and can be approved within 48 hours. Company and Trust applications may be approved within 5 business days.
Once your loan is established, you can access your account details, check on the status of your portfolio, monitor funds available and print statements through the margin lending online portal 24 hours a day, 7 days a week.
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You must read the following documents before applying
Suncorp Bank Margin Lending Terms & Conditions
Suncorp Bank Margin Lending Financial Services Guide
Suncorp Bank Margin Loan Product Disclosure Statement
Suncorp Bank Margin Lending Made Easy Brochure
Suncorp Bank Margin Loans are issued by Suncorp-Metway Ltd (“Suncorp Bank”) ABN 66 010 831 722 AFSL No 229882. Fees, charges, terms and conditions apply and are available on request. You should read the relevant Suncorp Bank Margin Lending Product Disclosure Statement before you make any decision regarding this product.