Call for margin loans cools off

Investors have wound back their use of margin loans … but there are other options.

Margin loans are loans put together allowing people to borrow to invest in shares. They have a number of specific characteristics including that they will usually lend to a certain value against any security (the loan to value ratio), they can force the sale of your shares if the loan falls below this value (the margin call) and they generally have interest rates higher than a housing loan.

Currently, according to Reserve Bank of Australia figures, there is about $12 billion borrowed on margin loans – the lowest amount for 10 years. The following table charts the growth and subsequent decline of margin loans.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles