Help & support
Boost your investing power with a CommSec Margin Loan. We lend you money to invest using your existing investment portfolio as security, or by combining your own cash with the money we lend you to invest. Your investments will be used as security for your Margin Loan. 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.
Once you've established a CommSec Margin Loan, you can transfer your existing shares, managed funds and/or cash into the loan as collateral. We then calculate the lending value of your collateral, which determines how much you can borrow. You can then use your available funds to make further investments with your original collateral and new investments, forming your overall portfolio.
Boost your potential capital growth and income by using your Margin Loan to buy more shares or managed funds for your portfolio.
Diversifying investments within a portfolio helps to manage investment risk. The extra purchasing power of a Margin Loan allows you to diversify as opportunities arise. Check which shares, ETFs and managed funds in your portfolio we lend against.
Harness the borrowing power of your investments to unlock equity without selling your shares or managed funds. Defer capital gain (and loss) events and build a larger portfolio at the same time.
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.
A Regular Gearing Plan combines the power of gearing with the discipline of regular savings, helping you build wealth over the long term.
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.
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.
CommSec gives you all the tools you need to monitor your portfolio's performance, including online summaries, gearing ratios, loan statements, notifications and research.
Interest is calculated daily on your settled loan balance, not your approved credit limit, so you’re only charged interest on the funds you have borrowed.
Market movements
A drop in the value of the portfolio held as collateral against your Margin Loan may require you to reduce your gearing level2 at short notice. This is 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.
Increased losses
A geared strategy can multiply your investment returns, but it can also increase your losses if the market declines and your investments perform poorly.
Reduced lending ratios
Lending ratios for securities are reviewed regularly and may be reduced or removed at our discretion, even for securities you have purchased in the past. If this happens and you are impacted negatively, we will let you know as it can trigger a margin call.
CommSec Margin Loan is issued by Commonwealth Bank of Australia. ABN 48 123 123 124 AFSL 234945. This product is administered by 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. CommSec is a Market Participant of ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Applications for Margin Loans are subject to approval. Fees and charges apply.
The information has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to the individual's objectives, financial situation or needs, and, if necessary, seek appropriate professional advice. You can view the CommSec Margin Loan Product Disclosure Statement, Margin Loan Terms and Conditions, Share Trading Terms and Conditions, Best Execution Statement and Financial Services Guide, and should consider them before making any decision about these products and services.
1 This page is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. The above information is not tax advice. Taxation laws are complex and subject to change. Commonwealth Bank does not provide tax (financial) advice under the Tax Agent Services Act 2009 (Cth). You should consider seeking independent tax advice from a registered tax agent, accountant or adviser before you make any decisions based on this information.
2 Gearing level is your loan amount divided by the value of your accepted investment/s (the securities held in your portfolio that we use to calculate how much you can borrow), expressed as a percentage.
