Margin loans

What is a margin loan?

A margin loan is simply a line of credit to buy shares or units in managed funds, where your portfolio is the only security required for the loan. It can be a powerful tool to access new investment opportunities, or to multiply possible returns from your current investments.

Why use a margin loan?

By using a margin loan you have more funds to invest, which could magnify your potential returns. You'll also have the ability to increase the range of securities in your portfolio, which can help reduce your investment risk.

You may also be entitled to claim loan interest as a tax deduction where the loan funds are used for business or investment purposes - a deduction that can be applied against your investment earnings and other taxable income earned during the year.

What are the risks of a margin loan?

The main difference between a margin loan and, say, a conventional property loan, is that shares and managed funds change in value each day. This means the lender will monitor your portfolio value, and if it falls below an agreed minimum, you will be issued with a margin call.

If this happens, you must provide additional funds to restore at least the minimum equity position. Learn more about understanding the risks.

How can Macquarie help?

We offer a range of margin loans to suit your investment needs:

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For more information about margin loans, including further details about margin calls and potential tax efficiencies, please:

The Macquarie Margin Loan is offered by Macquarie Bank Limited ABN 46 008 583 542, AFSL No. 237502 ("Macquarie"). Full terms and conditions are set out in the relevant loan contracts. Fees, charges and government taxes are payable.