Portfolio Lending

PORTFOLIO Lending.

Bell Potter is the only non-bank margin lender in the market. That means we're the only margin lender that thinks like an investor, not like a bank.

A Bell Potter margin loan offers you the opportunity to potentially increase your wealth by borrowing to invest in shares and managed funds. Borrowing to invest, if used as part of a comprehensive investment strategy, may help grow your wealth by building a larger portfolio, quicker.

Today's Variable Rates

Loan Amount($)	Rate
< $100,000	5.70% p.a.
$100,000 - $250,000	5.60% p.a.
$250,000 - $500,000	5.50% p.a.
$500,000 - $750,000	5.30% p.a.
$750,000 - $1,000,000	5.10% p.a.
$1,000,000 +	4.90% p.a.

*Last updated 20/03/2020

List of Securities we lend against

Portfolio Lending Accounts:

Domestic Securities

International Securities - please see Key documents for more information.

Super Lending Accounts:

Domestic Securities

For recent updates to the Approved Securities List please click here.

Benefits

We offer competitive interest rates with borrowing across a large range of Approved Securities.

Increase the size of your investments

Unlock equity by borrowing against existing holdings in your portfolio.

Dividends and franking credits

With a larger portfolio you can increase your potential to earn dividends along with associated franking credits and take advantage of any capital gains.

Diversification

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

Invest tax-effectively

Potential tax deductibility of some or all of the interest on the loan (depending on your personal tax situation).

Ownership

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

Risks

Margin lending also has its risks. While a geared investment can multiply your returns, it also has the potential to multiply your losses.

Risk	Description
Fall in the 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 stock to cover the shortfall in value.
Interest rate increases	A rise in interest rates may mean that dividend receipts will cover less of the financing 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.

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 you will need to complete a Suitability Statement, which asks questions about your current income, expenses, assets and liabilities.