Skip to main content
Adviser-only

Margin Loan

Discover our most comprehensive loan account. 

Everything you need 

The Leveraged Margin Loan is a revolving line of credit, offering a range of interest rate options and payment methods, a comprehensive acceptable investments list, exclusive add-on features to suit different investment strategies plus a simple and secure online application process. 

Margin Loan fact sheet

Add-on features to the Margin Loan 

Leveraged offers a range of add-on features to your Margin Loan that can help protect your share portfolio and overall investment strategy.
Exchange Options Plus

Exchange Options Plus (EOP) is a feature that enables you to add options strategies using Exchange Traded Options (ETOs) with your margin loan. Depending on your circumstances, ETOs can form part of your overall investment strategy to create wealth and protect your share portfolio.

With EOP you may:

  • protect against a fall in share price by purchasing a put option
  • earn additional income on shares by selling a call option
  • diversify your portfolio by borrowing up to 95% of the Strike Price of a put option.

 

Short Plus

Short Plus (SP) is a feature that enables you to implement a short selling strategy using your margin loan. Depending on your circumstances, short selling can form part of your overall investment strategy to create and protect wealth in a falling market.

With SP you may:

  • borrow shares you believe will fall in value, to sell
  • hedge your investments to offset potential losses without the use of derivatives
  • pursue a long/short/pairs trading strategy to potentially profit on both sides of the trade.

 

Instalment Plus

Instalment Plus (IP) is a feature that enables you to combine a regular savings and investment plan with your margin loan to progressively build an investment portfolio. To get started, all you need is an initial investment of $1,000, a minimum loan of $2,000 plus minimum monthly contributions of $250.

With IP you may:

  • buy through the ups and downs of the market
  • be able to buy at a lower average price if the overall price is trending upward
  • progressively build and diversify and investment portfolio.

Rewards Plus

Rewards Plus is an additional feature that enables you to earn Qantas Points with your Margin Loan to keep your Qantas Frequent Flyer program membership active and help you enjoy the benefits of membership sooner. Best of all, Rewards Plus offers you uncapped points potential.

You earn Qantas Points based on your loan balance and the points are calculated daily. The time points are awarded will depend on your selected interest payment schedule. If you pay interest in-advance, points will be awarded before the end of the month in which you prepaid interest. If you pay interest in-arrears, points will usually be awarded during the month after you pay interest.

The following table shows you how many Qantas Points you could potentially earn using Rewards Plus. This is valid for accounts opened after 1 August 2016.

Loan balance Qantas points
Less than $150,000 Up to 30,000 points per $100,000 p.a. pro-rata
$150,000 to $499,999 Up to 40,000 points per $100,000 p.a. pro-rata
$500,000 to $999,999 Up to 50,000 points per $100,000 p.a. pro-rata
$1,000,000 or greater Up to 60,000 points per $100,000 p.a. pro-rata

Rewards Plus fact sheet

 

Benefits and risks of a Margin Loan

Maximise investment opportunity 

Leverage an existing portfolio or create a new investment portfolio to boost your investment exposure, build wealth and meet your financial goals. 

Diversification 

Access more funds to diversify your investments into different asset classes, industries and companies. 

Liquidity 

Additional liquidity without selling assets so you can take advantage of investment opportunities when they arise.   

Flexibility 

Choose the degree of gearing that best meets your investment objectives and risk appetite. 

Tax Effectiveness 

You may be entitled to claim an income tax deduction for some or all of your borrowing costs depending on your individual circumstances. 

Changes in portfolio values and interest rates 

It is possible performance of your investments or changes in interest rates will result in you earning a lower return or incurring a larger loss than if you had not borrowed to invest. 

Events resulting in your loan becoming due 

Margin calls and events of default or termination can result in some or all of your loan being due for payment in a short period and/or immediately. 

Mismatch of cash flows and restrictions on the ability to deal in investments 

Interest and other charges can become due for payment before you receive any distributions from your investments. 

Net proceeds may not cover the loan 

You are required to repay the total amount owing when declared due irrespective of any net sale proceeds.

Reliance on others 

Reliance on operations, policies and procedures of the Lender, Nominee and Sponsor, and the Authorised Person acting in your interests.

Powers of the Lender, Nominee and Sponsor 

You give a Power of Attorney allowing certain acts by the Lender, Nominee and Sponsor.

Legislative changes 

Changes to legislation and taxation policies can potentially impact your facility. 

Complexity of a Margin Loan compared to a traditional loan 

Gearing can magnify your potential gains and losses. Ensure you have read and understood the Product Guide, as well as obtain the appropriate financial advice before investing. 

We can help you get started today

Get in touch

Phone

1300 307 807
+61 2 8282 8282 (If calling from overseas)

8:30am - 5:30pm AEST,
Monday - Friday

Online

Send us an online enquiry or email info@leveraged.com.au

Mail

GPO Box 5388,
Sydney, NSW, 2001

Connect with us
Bank-linkedin
Leveraged Equities Limited ABN 26 051 629 282 AFSL 360118
© Copyright 2019