NAB Equity Builder is a ‘no margin call’ investment loan that gives you more capital to invest in financial assets such as exchange traded funds (ETFs), listed investment companies (LICs) and managed funds.
Invest your borrowed funds any time and from any amount starting from $10K.
Once you’ve paid off your loan, you have have lots of options. You can keep your portfolio of assets as an additional income stream, reinvest or take some profits to spend on the things that matter to you.
|Variable interest rate p.a||Special rate ^|
- Standard variable rates effective from 1 December 2023.
^The special rate for variable loans applies to new NAB Equity Builder facilities drawn from 1 December 2023. The discount will apply for the life of the loan, or until varied or withdrawn by NAB.
The following fees may apply to some clients:
|Individual and joint applicants||$0|
|Trustee applicant (Individual)||$150|
|Trustee applicant (Company)||$300|
|Tasmanian residents (Applicants or guarantors) All applicants and guarantors residing in Tasmania are subject to a State Government charge to cover stamping and registration of the Power of Attorney. Contact NAB Equity Lending for further information.|
Default interest may be charged on any loan amount that exceeds the approved facility limit. Default interest is charged at NAB Equity Lending's published variable rate for loans of less than $250,000 plus a margin of 2.0%(p.a.). Therefore, if the variable rate for loans less than $250,000 changes, so will the default interest rate.
How a professional adviser uses NAB Equity Builder for his clients.
NAB Equity Builder allows you to customise each loan program to suit your particular investment goals. You can select your preferred investments, starting loan amount, style of principal repayment, and time frame to repay the loan.
Instead of using your home as security, the managed investments bought/contributed will be held as the loan security. As there are no margin calls, price movements of the security supporting the loan won’t trigger the need for any corrective action (ie the acceleration of loan repayments, or the sale of loan security); regardless of the value of the outstanding loan.
Borrowing to invest can increase the return on your funds, when the investment outperforms the cost of borrowing. It can also allow you to increase your exposure to a preferred investment theme.
As the NAB Equity Builder loan program requires the consistent repayment of loan principal, the loan balance used to calculate loan interest is constantly decreasing.
Similar to a home loan, monthly repayments must be made consistently. If you miss a monthly repayment, your investments may be sold. This may have capital gains tax (CGT) implications.
If the interest rate increases, your principal and interest repayments may be greater than what you originally budgeted for.
If one of your chosen investments is removed from the Approved Investment List, you may need to switch to another investment. The sale of an existing investment may have capital gains tax (CGT) consequences.
Investors who borrow should be comfortable with the risk they’re taking. It’s important to understand that gearing magnifies both the potential for gains and losses in assets, which can both increase and decrease in value.
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