Speak to an Adviser

The right advice is critical to successful investing.  We recommend you speak to your financial and/or tax adviser about how a margin loan may affect your financial position.

Your adviser can offer advice on the terms and conditions of your margin loan as well as strategies to minimise the risks.

Diversify

Having access to more investment capital gives you the power to invest in a range of securities. By investing in a diversified portfolio, you reduce your exposure to the price movements of any single security and your portfolio’s risk may be more closely aligned to that of the market.

Monitor your loan

Because the balances and limits within your margin loan change constantly, it is important you monitor your portfolio closely. By managing your loan day to day, you can be proactive in your approach to margin calls and ensure your investments are aligned with your financial position and your risk appetite.

Make regular payments to your loan

As well as managing your loan day to day, making regular payments or having your dividends reinvested into your margin loan may help to keep your loan balance in check and may provide an extra buffer against margin calls. This may reduce your interest expense as well as reduce the overall lending ratio of your account and thus your risk.

Portfolio LVR

The borrowing limit is the maximum amount you can borrow given the respective Loan to Value Ratio of securities in your portfolio. Invest at a Loan to Value ratio that suits your risk appetite, not the maximum available. In a falling market, the lower your LVR, the further away your account is from margin call.

This is not a full list of the risks involved in margin lending. Please see the Suncorp Bank Margin Loan Product Disclosure Statement for additional risks and consult your Financial Adviser.