1. What is NAB Equity Builder?
NAB Equity Builder is a principal and interest investment loan that’s used to purchase financial assets, specifically managed investments. Managed investments include managed funds, exchange traded funds (ETFs), listed investment companies (LICs) and separately managed accounts (SMAs).
2. How does NAB Equity Builder work?
NAB Equity Builder works similarly to a home loan. With a home loan, you borrow money to purchase property. With an Equity Builder loan, you borrow money to purchase certain types of share market investments (ie exchange traded funds or managed funds). Like a home loan, you pay down the loan with monthly principal and interest repayments. When the loan has been fully repaid you own the investments.
3. Is NAB Equity Builder a margin loan and are there margin calls?
No. NAB Equity Builder is not a margin loan. It’s a principal and interest investment loan with monthly repayments so there’s no risk of margin calls.
4. Variable or fixed interest rate?
NAB Equity Builder is a variable interest loan only.
5. How do I apply for NAB Equity Builder?
You can apply online anytime and it takes around 10-15 minutes to complete. Before starting your application please have all your financial information ready such as income, assets, liabilities and expenses. Additional information may also be required for NAB to complete the loan assessment.