Investment Loans for Shares

[Tysonboss1]

Not if the margin lender charges interest on a greater minimum balance as is the case with BT Margin Lending.



http://www.bt.com.au/investors/our-products/margin-lending/bt-margin-lending-online-details.asp

Gee, Thats a pretty harsh rule, I am with commsec I don't think they have a rule like that. my margin loan is over $100k so it would bother me anyway.

 

[drsmith]

Gee, Thats a pretty harsh rule, I am with commsec I don't think they have a rule like that. my margin loan is over $100k so it would bother me anyway.

I had a margin loan with BT Margin Lending back in the early/mid 90's. In those days the minimum loan was $20k but I got in just before they introduced the contracts where interest was charged on a minimum balance of $20k. I think too somewhere in the mid 90's they changed the minimum loan to $50k but I'm not absolutely sure on the detail. It may have been something like min initial loan $50k, min interest on $20k.

I was thinking that today the minimum loan balance for margin lending would be $50k or more and was suprised to see that BTML was $20k when checking in relation to this discussion. I do note though that with lower loan balances they charge transaction fees. That was not the case back in the 90's.

If I was to borrow to buy shares now I would first of all use home equity.