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Investing & Super / Geared Investments

Welcome to Geared Investments Loan

  • We provide loans to invest in shares or managed funds, or to release equity in existing holdings for further investments.

    With roots stretching back to 1996, we understand the challenges clients and advisers face when managing an investment loan during all market cycles.

    Investment loans are for:

    • Clients that utilise the services of a financial adviser; or
    • Wholesale clients1 (self-directed or advised)

    With an investment loan, you can trade through the broker or adviser of your choice, including directly with CBA’s own online stockbroker, CommSec for self-directed customers. Self-directed clients will be provided with a CommSec Share Trading Account for a fully integrated borrowing and trading experience.  

Why choose us?

  • Experience 

    • We’ve had a history of providing award-winning and innovative gearing solutions to Australian advised investors, through businesses including Colonial Geared Investments and CommSec Adviser Services
    • Our experience enables us to provide you and your adviser with the relevant support you need, to help you grow your portfolio

  • Strength

    • Geared Investments Loans are issued by the Commonwealth Bank of Australia
    • We are committed to responsible lending. Access a wide range of accepted securities including shares, managed funds, Separately Managed Accounts and Investment platforms

  • Service

    • Our Account Managers and Relationship Managers are committed to supporting you in all market conditions

  • Support

    • Our dedicated Geared Investment Loan website gives you and your adviser all the tools you need to monitor and manage your portfolio's performance, including online loan position, online transfers, loan statements, holdings, lending simulators and case studies

How it works

  • We offer investment loans for advised clients who use the services of a financial adviser.

  • Once you or your adviser has established an investment loan, you can transfer shares, managed funds or cash as collateral. We automatically calculate the lending value based on your holdings, which determines how much you can borrow. You or your adviser can invest directly into shares and managed funds or use the funds in conjunction with other investment purposes.2

    • Buy, sell, or transfer funds within your loan’s approved limits
    • Your gearing level changes with daily price movements of your portfolio and transactions
    • Monitoring your gearing level to ensure it stays below the approved limit
    • Interest on your loan balance is calculated and paid according to your loan agreement
    • Check with listed securities and unlisted securities we lend against 

Benefits

Accelerate your wealth creation: Boost your potential capital growth and income by using your Investment Loan to buy more shares or managed funds for your portfolio.

Diversify

Diversification across varied companies, industries and countries, can help manage your investment risk. The extra purchasing power of our Investment Loan allows you to diversify as opportunities arise.

Unlock equity

Realise the equity in your portfolio - harness its borrowing power with our Investment Loan. Defer capital gain (and loss) events, and build a larger portfolio at the same time.

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.

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. 

Flexible investing

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

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.

Risk

  • Borrowing to invest can multiply investment returns in a rising market. However, it can also multiply investment losses if the market declines and your investments perform poorly. Some of the risks of using an investment loan include:

    • Returns and losses will be magnified, for both positive and negative returns
    • Interest rates may rise, increasing interest costs
    • Borrowing limits may be reduced, increasing the potential for a Margin Call
    • Margin Calls may require the sale of assets at unfavourable prices
    • Taxation legislation may change
       

    Managing the risks of an investment loan

    There are ways to manage the risks associated with an Investment Loan. They include:

    • Don’t borrow to the maximum permitted gearing level (i.e. the Base LVR)
    • Ensure that your portfolio is adequately diversified
    • Reinvest distributions and dividends
    • Pay your interest costs instead of capitalising them
    • Don’t rely on investment income to cover your interest costs
    • Have a cash reserve available to avoid or cover Margin Calls
    • Regularly review your portfolio and gearing level
    • If your account is in buffer, use the time to be proactive and avoid a Margin Call
    • Regularly monitor your loan position and be prepared to take action quickly

Managing Gearing Levels

Gear the right portfolio. Hold a diversified portfolio, manage market entry, invest for the long term
Understand the risks and know the costs. Know how investment lending works, understand the costs involved, understanding the implications of capitalising interest
Manage your LVR. Don’t fully gear, keep some cash in reserve, manage your LVR before a margin call

Monitor your loan to avoid triggering a Margin Call

It is important to regularly monitor the status of your Investment Loan. A downturn in the market or a reduction in the borrowing limit of a listed security or fund securing your investment loan may move your Current LVR closer to your Base and Margin Call LVR.

Investors should always aim to keep their Current LVR below the Base LVR – the maximum permitted level of gearing. Once the Current LVR moves above the Base LVR, the investment loan is in the ‘Buffer’. If the Current LVR reaches and exceeds the Margin Call LVR the investor will be in Margin Call and will be required to bring the Current LVR back below the Base LVR. This is usually done by reducing the loan balance and/or adding approved securities to the portfolio.

Fees & charges

Effective from 01 July 2016.

This information can be found in the Geared Investments Loan Product Disclosure Statement (PDS).

Type
Fee
Early Repayment Adjustments
Fixed Interest Rate Loans: An early repayment adjustment may be payable after allowing for a refund of any interest paid in advance. The fee is calculated using the criteria in the Geared Investments Terms and Conditions.
Dishonour Fees
Any direct debit rejection will incur a fee of $30. This fee will be charged to the loan account at the time of the rejection or on termination of the loan facility.
Personal Property Securities Register (PPSR) Registration Fee
A government fee may be payable to register or amend the registration of the Security Interest on the PPSR.
Trust Investigation Fee
A minimum fee of approximately $200 will apply for Trust Deed Investigation if a Trust is the borrower or security provider to the loan and the Trust’s total loan exposure to the Bank will be greater than $500,000. The fee will be charged to the loan, unless there is insufficient collateral, in which case we will debit the nominated bank account.
Off Market Transfer Fee
A fee of $54 per security is applicable when completing an Off Market Transfer.

Interest rates effective from 1 July 2024

  
Interest paid yearly in advance
Interest paid monthly in arrears
Variable Rate
9.65% p.a.
1 Year Fixed Rate
8.49% p.a.
8.54% p.a.
2 Years Fixed Rate
8.64% p.a.
8.69% p.a.
3 Years Fixed Rate
8.74% p.a.
8.79% p.a.
5 Years Fixed Rate
8.99% p.a.
9.04% p.a.

Interest rates are subject to change without notice and are indicative only. Actual rate and other fixed terms and firm rates are available on application. Rates for Geared Investments Loan include trail commission (where applicable).

If you have any questions, please contact us via email, or call our team on 13 15 20.

Tools & forms

Calculator

  • Fixed vs Variable Interest Calculator

    This calculator allows you to determine the potential interest savings between a fixed and variable interest rate on your loan balance over different terms.

Frequently asked questions

Contact us

Wholesale Loan

  • We offer investment loans to wholesale clients who meet eligibility criteria1. With a minimum credit limit of $1 million, the Commonwealth Bank Geared Investments Loan for wholesale client offers:

    • Fast and simple application process. In most circumstances, no financials are required for credit limit under $5 million. In some circumstances, such as concentrated security, we may require additional information
    • Enhanced LVR model for diversified portfolio (Portfolio LVR)
    • Enhanced bonus stock model
    • Tailored rates for wholesale clients
    • Dedicated Relationship Managers

    As loans may not fit a standard template, investment loans can be tailored to suit clients with:

    • Single stock or concentrated positions
    • Bespoke or individual LVRs on securities
    • High credit limit

    Where credit limits are above $5 million or bespoke arrangements are required, a credit assessment will be required including a financial assessment.

    Wholesale Investment Loan application forms and Accepted Securities Lists can be found on our Geared Investments Form page.

Things you should know

  • Commonwealth Bank Geared Investments 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), 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 Geared Investments Loans are subject to approval. Fees and charges apply.

    The information has been prepared without taking into account your objectives, financial situation or needs. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to their objectives, financial situation or needs, and, if necessary, seek appropriate professional advice. You can view the Geared Investments Loan Product Disclosure Statement and Geared Investments Loan Terms and Conditions, and should consider them before making any decision about these products and services.

    1 Wholesale status is qualified by either a valid Qualified Accountants Certificate OR evidence of collateral with minimum $2.5 million in value.

    2 Other investment purposes only apply for non-natural applicants and excludes residential property investment purposes. Please refer to the Geared Investments Loan Terms and Conditions and Product Disclosure Statements available on our website for more information