Margin Lenders reduce fixed rates

Fixed rates for 12 month margin loans have fallen to as low as 7.50% during the last month as a consequence of expectations of falling world and local economic growth. The average 12 month fixed rate is approximately 8.50% which compares with a 12 month fixed rate for a home equity loan of approx. 6.95%.

The lowest 12 month fixed rates are currently offered by JB Were for loan balances over $50,000, followed by Deutsche Bank at 7.65%, however, this rate applies to loan balances over $500,000. The highest 12 month fixed rate currently charged is 9.20% from HP JDV Ltd.

Fixed margin loan rates have been slower to respond than the more market sensitive home loan rates. We can expect to see greater attention to this area in the lead up to 30th June as investors look to margin lending for tax planning purposes.