Overview

  • Power up your portfolio

    Multiply your investment potential with an award winning CommSec Margin Loan. Use this powerful investment tool to unlock the equity in your existing investments, and combine it with borrowed funds to expand your portfolio.

    With the extra investment capital from a Margin Loan, you can build a larger portfolio that can allow you to diversify your investments over a wider range of assets. This means more than just increased potential returns - it also gives you greater exposure to price movements, dividends, franking credits and corporate actions.

How it works

  • Once you have established a CommSec Margin Loan, you transfer your existing shares, managed funds or cash into it as collateral. We calculate the lending value, which determines how much you can borrow. You can then use your available funds to make investments, which combine with your original collateral to form your overall portfolio.

    • You can buy, sell, transfer cash within your loan’s approved limits
    • Your gearing level moves with the daily price movements of your portfolio and your transactions
    • You must monitor your gearing level to ensure it stays below the approved limits
    • Interest is calculated daily on your loan balance, and paid according to your loan arrangement
    • Check which shares in your portfolio we lend against

Benefits

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Accelerate your wealth creation

Boost your potential capital growth and income by using your Margin Loan to buy more shares or managed funds for your portfolio. 

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Diversify

Diversification – across varied companies, industries and countries - can help to reduce investment risk. The extra purchasing power of a Margin Loan allows you to diversify as opportunities arise. Check which shares and managed funds in your portfolio we lend against.

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Unlock equity

Don’t sell your shares to realise the equity in your portfolio - harness its borrowing power with a Margin Loan. Defer capital gain (and loss) events, and build a larger portfolio at the same time. 

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Invest tax effectively

Obtain potential tax deductions by claiming interest expenses. Bring forward interest expenses by prepaying interest. Potentially reduce your tax liability by buying more stocks that pay franked dividends. 

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Build wealth over time

A Regular Gearing Plan combines the power of gearing with the discipline of regular savings, helping you build wealth over the long term. 

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Flexible investing

Choose from a range of interest rate and repayment options - with no minimum loan balance requirements - to create the Margin Loan that suits you best. 

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Liquidity

If at any time you need to access the capital in your loan security, you can sell assets and transfer available funds online - effectively having cash on call when you need it. 

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Online tools

CommSec gives you all the tools you need to monitor your portfolio's performance, including online summaries, gearing ratios, loan statements, notifications and research.

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Advanced strategies

A drop in the lending value of your portfolio (if the value of your stocks and funds falls) may mean you need to reduce your gearing level at short notice - also known as a margin call. 

Risks

  • Market movements

    A drop in the lending value of your portfolio (if the value of your stocks and funds falls) may mean you need to reduce your gearing level at short notice - also known as a margin call. 

  • Interest rate movements

    If interest rates rise, the overall costs of your investment may increase, potentially reducing your profits. Fixing your interest rate can help you avoid this risk. 

  • Interest rate movements

    If interest rates rise, the overall costs of your investment may increase, potentially reducing your profits. Fixing your interest rate can help you avoid this risk. 

  • Reduced lending ratios

    Lending ratios are reviewed regularly and may be reduced even for securities you have purchased in the past - this may trigger a margin call.

Rates & fees

    • Interest rates
    • Brokerage fees
    • Application fees
    • Account maintenance fees
    • Account closure fee

     

    Discover rates & fees

Things you should know

  • The information contained may include general advice but does not take into account the investment objectives, financial situation and needs of any particular individual. You should assess with the help of legal, financial and taxation advice, whether the information is appropriate in light of your own circumstances before acting on it.

    Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the responsible entity and issuer of products made available under FirstChoice Investments and FirstChoice Wholesale Investments. CFSIL is also the Investor Directed Portfolio Service (IDPS) operator, administrator and custodian of the Avanteos Wrap Account Service which includes FirstWrap Plus Investments and FirstWrap Investments (closed to new investors 28 March 2011).

    This information on this webpage may include general advice but does not take into account your individual objectives, financial situation, needs or tax circumstances. The Target Market Determinations (TMD) for our financial products can be found at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. You can get the PDS and FSG at www.cfs.com.au or by calling us on 13 13 36.

    © Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945.  CommSec is a Market Participant of ASX Limited and Cboe Australia Pty Limited (formerly CHI-X Australia Pty Limited), a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited.

    You can view the CommSec Share Trading Terms and Conditions (PDF) and our Financial Services Guide (PDF) and should consider them before making any decision about these products and services.