Portfolio lending

Increase your participation in the share market and accumulate wealth faster through gearing.

Bell Potter Portfolio Lending is a margin lending product offered by Bell Potter Capital. It is for people who want to use gearing to build a strong portfolio of investments and to gain greater market exposure.

Used as part of a comprehensive investment strategy, responsible gearing gives you the potential to accumulate wealth faster than if you only used your own funds to invest, so that you can reach your financial goals sooner. Gearing also has the potential to help you own a more diversified portfolio and may have tax advantages for certain investors.

FULL VARIABLE INTEREST RATE SCHEDULE

$100,000

5.70%

$100,000 – $250,000

5.60%

$250,000 – $500,000

5.50%

$500,000 – $750,000

5.30%

$750,000 – $1,000,000

5.10%

$1,000,000

4.90%

Last updated: 20 March 2020

FIXED PREPAID LOAN RATE SCHEDULE

$0 – $249,999

3.90% p.a.

$250,000 – $499,999

3.75% p.a.

$500,000 – $999,999

3.60% p.a.

$1,000,000 – $1,999,999

3.25% p.a.

$2,000,000 +

3.20% p.a.

$2,000,000

Get in touch with your adviser to discuss

KEY BENEFITS

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Multiply your investment potential

Use your loan to buy more approved domestic or international shares or managed funds for your portfolio, increasing your potential capital growth and income.

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Competitive market offering

Our typical loan-to-value ratio (LVR) for major global companies is 70% and 75% for blue chip domestic securities. We offer very competitive variable, fixed and pre-paid rates. There are no establishment, maintenance or administration fees or minimum balance requirements. The loan facility can remain undrawn until required at no cost to the client.

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Investment tax effectively

Depending on your own personal tax situation a margin loan may help maximise the after tax return on your investments by: 1) increasing your exposure to franking credits 2) claiming interest costs on your loan as a tax deduction, and 3) bringing forward your deductions by using our prepaid rates.

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Access to well-known brands

Through Bell Potter you can purchase both domestic and international shares using your portfolio lending facility.

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Ownership

You remain beneficial ownership of the stocks in your portfolio (unless you are in default).

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Diversification

Create a more diversified portfolio without having to sell existing holdings.

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Tools to monitor your portfolio

You can view your holdings, portfolio performance, end of day pricing and notifications via our Client Access website.

RISKS TO CONSIDER

Fall in value of portfolio

If your portfolio falls below a certain value – known as the loan-to-value ratio (LVR) – you could face a margin call. You could be required to add more collateral to your loan or to sell down stocks to cover the short call in value.

Interest rate increase

An increase in interest rates may mean that dividend receipts will cover less of the financial costs.

Full recourse

Margin loans are full recourse meaning that if you can’t pay back the loan, other assets owned by you may be sold to repay the outstanding amount.

Securities we lend against

SUITABILITY

Margin lending is not for everyone and should only be used as part of a wider investment strategy. A Bell Potter investment Adviser can help you to work out if margin lending is suitable for you.

As part of the application process for retail clients you will need to complete a Suitability Statement, which asks questions about your current income, expenses, assets and liabilities.

Get started

To apply for a margin loan contact your Bell Potter Adviser or call 1300 023 557.

GET STARTED