Home News Will a margin loan make it harder to be approved for a loan?

Will a margin loan make it harder to be approved for a loan?

Font size :

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.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

Mortgage applications drop in second quarter Mortgage applications drop in second quarter

This marks the “beginning” of a downward trend, says Equifax executive Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Jul 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords