Skip to Content

NAB Margin Loan

Overview

Greater diversity. Dedicated service.
Better value.

Greater diversity

Access a broad range of investment options.

Dedicated service

A dedicated relationship manager assigned to you.

Better value

Competitive fixed and variable rates for all products.

Women-_chair

Great for investors who want
a margin loan that lets
them do more.

Case studies

Find out how NAB can help accelerate your investment portfolio. 

Take advantage of investment opportunities

The share market presents many opportunities to invest. Some opportunities come with a deadline - IPOs, capital raisings, share purchase plans or rights issues.

For the investor willing to take advantage of as many opportunities as possible, the ability to react in a timely fashion will be controlled by the ease of access to funds. 

When an investor’s only source of funds is the sale of existing investments, the decision “to buy” will be compounded by the decision of “what to sell”. The “what to sell” decision can become challenging, particularly if it is done under time pressure.

A margin lending facility, secured by an existing portfolio, can become the source of funds for the full range of investment opportunities. The decision to sell an existing asset to replace the withdrawn funds can then be done more thoughtfully, without the same level of time pressure. With a NAB Margin Loan investors enjoy:

  • Access to 2,500+ ASX listed securities, exchange traded funds, international listed shares and unlisted managed funds
  • Fund withdrawals
  • Flexible investment options

While a margin loan can increase gains in a rising market, it can also magnify losses when the market declines. Find out more about the risks and benefits of a NAB Margin Loan.

Use our calculator to simulate how a margin loan may increase your exposure to the market.

What If Calculator

NAB margin loan

Invest when the
opportunities arise.

International exposure

Just as a margin loan can enable an investor to respond to local investment opportunities, it can also be an efficient way to gain exposure to international investments*.

A margin loan through NAB now allows investors you to invest in over 1,000 internationally listed companies, depending on the broker. By pledging Australian shares as loan security, borrowed funds can be used to acquire shares in growth sectors globally. 

The same margin loan facility can also accept existing international shares as loan security, and the borrowed funds can be used to acquire ASX securities. With a NAB Margin Loan investors enjoy:

  • Access to domestic and international opportunities
  • Retention of existing assets

While a margin loan can increase gains in a rising market, it can also magnify losses when the market declines. 

Use our calculator to simulate how a margin loan may increase your exposure to the market.

What If Calculator

*Only clients of nabtrade, JB Were (ACN 137 978 360 and AFSL 341162) and Macquarie Bank Limited (ABN 46 008 583 542, and AFSL and Australian Credit Licence 237502) can use international shares as loan security.

Nab margin loan

Diversify with global markets.

Apply now

Looking for liquidity

There are times when an investor may need funding for other investment purposes, but selling current investments would realise a large capital gain; creating an undesirable tax liability. 

By pledging the existing portfolio as loan security, a NAB loan facility (NAB Margin Loan or NAB Equity Builder) can advance funds for any business or investment purpose. This may solve two problems for the investor:

  1. It allows the investor to access the desired liquidity now, to be applied to other business or investment purposes, while retaining the existing portfolio, and
  2. It lets the investor control if/when the unrealised capital gain becomes a realised capital gain. 

While a margin loan can increase gains in a rising market, it can also magnify losses when the market declines.

Use our calculator to simulate how a margin loan may increase your exposure to the market.

What If Calculator

Nab margin loan

Access to liquidity when you need it.

Apply now

benefits & Risks

Benefits of a margin loan

Gains

Leverage may amplify gains in a rising market.

Increase income

By borrowing to invest, investors may be able to generate more income. 

Flexibility and choice

Flexibility for the investor to choose the transaction size - start investing with a smaller deposit than usually needed for property.

Tax effective

Potential to claim ongoing interest expenses or pay your interest up front, and the potential to reduce income liabilities through franking credits.

Risks of a margin loan

Margin calls

If a portfolio's value falls so that the amount of equity an investor holds also falls below our required levels, we may ask for extra security or funds to be deposited. If an investor fails to do this, we may sell their assets to correct the position.

Reduced gearing levels

We regularly review our lending ratios and may decrease them, even for securities an investor already owns. When that happens, it can sometimes trigger a margin call.

Suspended securities

If an investor's securities get suspended from trading we may ask them to deposit additional funds or securities. 

Increased rates

If an investor has a variable interest rate on their loan, it may increase. To manage this risk, investors should ensure they gear conservatively and have enough capital to deal with a rate rise. Investors can manage this risk by offsetting any distributions or income received from securities against the balance of the loan. 

Increased losses

While leverage may amplify gains, it also amplifies any losses in a falling market.

Risk management

Investors can manage these risk by gearing conservatively, diversifying and monitoring investments, and paying interest regularly. 

Calculator

What if calculator

Use the What if calculator to simulate how a new or existing margin loan might allow you to increase your exposure to the market. 

  1. Enter in the value of your current facility limit or maximum loan you want to establish. 
  2. In the Add Transaction section, choose a loan security type – ie: Deposit of cash or Transfer In of existing shares.
  3. If you’ve chosen Transfer In, add in the security code and units held.
  4. The calculator will then determine the relevant LVRs and Available Funds and display these in the Proposed column.  

Tip: If you are looking to refinance a loan from a different lender, simulate your current loan balance by adding a Withdrawal.

Fees & Rates

NAB Margin Loan 

Variable interest rates (p.a)

Less than $250,000 6.95%                                  
$250,000 - less than $1.0M 6.70%
$1.0M & above 6.45%

Download all interest rates PDF (21KB) - Rates effective from 18 April 2017