If a client wants to establish a new investment portfolio, increase an existing portfolio or free up their capital, margin lending may be a wealth creation strategy you may wish to discuss with them.
What is it?
A margin loan from NAB Equity Lending is a flexible investment loan that can be used for investment purposes such as investing in shares and managed funds. Your client simply provides existing approved shares, managed funds or cash as security for the loan.
They can then use the borrowed money to access a greater range of investment opportunities, because they are not limited to investing their own capital.
Key features and benefits
|Low minimum loan amount||A minimum amount of $20,000 means your client doesn't need to borrow large sums of money to start (or build) their investment portfolio.|
|Broad investment choice||Your client can borrow against an extensive list of approved shares and managed funds. This enables them to diversify their portfolio and not rely too heavily on the performance of any one investment.|
|Attractive interest rates||Rate discounts are also available for loans greater than $250,000.|
|No application or ongoing service fees^ for individual or joint applicants||Your client can invest more money into the investments of their choice.|
|The ability to establish instalment gearing||Investment gearing provides your client with the ability to invest in approved managed funds on a monthly basis, allowing them to drip feed their money into the market rather than investing it all at once.|
|24 hour online access to Facility information||Monitoring your client's investment portfolio is easy with online access for you and your client to their Facility details 24 hours a day, seven days a week.|
|Your client can offer third party security||Your client can use an existing approved portfolio held by another person or company as security for their loan.|
|Prompt loan approval||Margin lending applications are subject to approval which is generally provided within 48 hours for individual and joint applicants.|
Intergrated reporting with
|Where your client's margin loan is invested wholly into these services, you have access to consolidated reporting on their loan balance and information on all their MLC holdings via mlc.com.au|
|Dedicated, personal Account Manager service||A personal Account Manager is allocated to assist you to manage your client's Margin Lending Facility and assist you with any queries|
Where do I go from here?
To find out more go to nab.com.au/equitylending, or call 1300 135 145 to speak to a NAB Equity Lending Client Service Representative.
A Product Disclosure Statement (PDS) is available for NAB Equity Lending Cash Management Account (CMA) which may be used in conjunction with fixed rate loans. NAB is the issuer of the CMA and recommends you consider the PDS before making any decisions regarding this product. The PDS is available at nab.com.au/equitylending.