Q. I’ve heard that my margin loan will make it harder for me to be approved for a property loan.  Is that right?

A. That depends upon the lender.  Some lenders see the loan, and fearing that all of your shares might disappear in an instant share market meltdown, they will require for you to be able to repay that loan without any help from the shares.  That’s not placing much faith in the whole margin lending safety process.

However, there are a few lenders that understand that your obligations to the margin loan are well protected with the ability to sell down the shares.  Naturally the margin loan provider is going to limit you to shares that are trustworthy, and the system of maximum lending ratios and margin calls should protect the ability of the portfolio to cover the amount owing. 

In a crisis you could end up with nothing, but that’s very different than ending up owing a fortune with nothing left over to repay it!

So, the bottom line is that you should be able to find a lender who can provide you with a competitive loan that isn’t going to penalise you for having a margin loan.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan