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, AFS Licence 232468 (Colonial First State) is the issuer of the FirstChoice range of super and pension products from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. Colonial First State also issues interests in products made available under FirstChoice Investments and FirstChoice Wholesale Investments. This information may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. PDSs for the FirstChoice range of products are available at colonialfirststate.com.au or by calling us on 13 13 36.

Colonial First State Custom Solutions, is the registered business name of Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (Avanteos). Avanteos is the issuer of the FirstWrap super and pension products from the Avanteos Superannuation Trust ABN 38 876 896 681. Avanteos also issues interests and operates investments under FirstWrap. This information provides general information and does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. Disclosure documents for the FirstWrap range of products are available from your financial adviser.

Commonwealth Financial Planners are Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124.

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 and both entities are incorporated in Australia with limited liability.