NAB Equity Builder

[InsvestoBoy]

That other thread where @Student of Gann is asking if they can use their home loan to buy stocks had me looking around the internet to see what the cheapest personal loan rate is.

I discovered this interesting product from NAB

NAB Equity Builder

Diversifying your investments? Find out how to get share market exposure with a NAB Equity Builder ‘no margin call’ investment loan.

www.nab.com.au

It's not a margin loan! You can borrow ??? amount (looks like 20K is the minimum), and you just have to pay the principal and interest, no margin call ever.

The rate is higher than a mortgage rate but there seems to be a discount rate of some sort and otherwise it basically seems to work like a mortgage on an investment property.

Pretty innovative product from NAB if you ask me as I have often had the argument with people that their investment property ROE is not that impressive versus an equally leveraged share portfolio. I feel like @Value Collector would like it in theory.

 

[frugal.rock]

Pretty innovative product from NAB if you ask me as I have often had the argument with people that their investment property ROE is not that impressive versus an equally leveraged share portfolio.

Not a lot of difference once you look under the hood...

Limited investment options.
WAM, SOL etc,
ETF's & plenty of managed funds

Good one Wilson...
The selection is probably more restrictive than margin lending.

 

[Value Collector]

The selection is probably more restrictive than margin lending.

Without the option of the margin call, it's understandable that they would restrict what you can invest in.

 

[frugal.rock]

Of course.
They are offering interest free credit cards too. No interest ever.

But, of course, it's a bank.
They have learnt redefinition tricks from their grubberment masters.

Everywhere you look these days, it's "The Emperor's New Clothes".

 

[Telamelo]

Of course.
They are offering interest free credit cards too. No interest ever.

But, of course, it's a bank.
They have learnt redefinition tricks from their grubberment masters.

Everywhere you look these days, it's "The Emperor's New Clothes".

Offering interest free credit cards so no interest ever! Really !?!? tell me more