Share trading loan
Maximise your potential returns and increase the size and diversity of your portfolio, by taking out a share trading loan.
We want to give direct investors the ability to continue to build on their investment strategy. With a share trading loan through Westpac you have the flexibility to manage your strategy, your way:
- Variable interest rate of 5.20% p.a., plus get up to $1,000 in free brokerage#
- You can use your existing cash, shares or managed funds as security for the loan.
- Use your approved assets as security for the loan and borrow up to $500,000^;
- If you link your investment loan with your Westpac Online Investing Account, you have immediate access to your funds as and when market opportunities arise;
- You have 24/7 access to your accounts and flexible repayments options;
- There are no transaction limits, no minimum amounts for loan drawdowns or repayments
- All dividends and franking credits (subject to satisfying certain tests such as the 45 day rule) over the life of the investment, can be used to pay back into your loan.
- You have direct access to our Westpac Investment Lending specialists. You can call them Monday-Friday, 8am-6.30pm (AEST) - 1300 551 744.
More information on gearing and margin loans:
The benefits and risks of investing lending
There are many benefits associated with investment lending:
- You can increase the diversity across your portfolio by purchasing additional assets;
- You gain the potential to increase the returns across your portfolio by investing larger sums of money;
- The interest you pay on the loan may be tax deductible; and
- You can defer taxation on capital gains as you don’t have to sell down investments to purchase new investments.
Like any form of lending, a investment lending also carries some level of risk, the common risks being:
- Negative market movements;
- Interest rate rises;
- LVR reductions or removal;
- Dividends from investments not received; or
- Taxation law changes.
The key risk with investment lending is where your loan balance exceeds the limits set, you will then receive a margin call.
Westpac Online Investment Loan
|Application Fee, transaction fee, establishment fee||NIL|
|Internet Trading Brokerage (GST Inclusive)||$19.95 or 0.11%*|
|Phone trading brokerage (GST Inclusive)||$59.90 or 0.44%*|
|* Brokerage is calculated as the greater of the minimum brokerage or percentage of the transaction amount.|
Integrated Westpac Online Investing Loan rates
Variable Interest Rate
|Variable Interest Rate||5.20% p.a. (effective from 1 September 2016)|
Fixed Interest Rates (Pre-paid interest is not refundable)
|3 months pre-paid||4.70% p.a.|
|6 months pre-paid||4.70% p.a.|
|9 months pre-paid||4.70% p.a.|
|12 months pre-paid||4.70% p.a.|
|2 years pre-paid||5.49% p.a.|
|3 years pre-paid||5.84% p.a.|
Interest can be pre-paid on fixed rates for terms of 3, 6, 9 or 12 months.
The LVR determines the amount Westpac Online Investment Loan will let you borrow against an individual security. With Westpac Online Investment Loan, LVRs are up to 75%, depending on the particular security.
Approved Securities List
You can save time and money by setting up an integrated Westpac Online Investing and Investment Loan account, and settling directly to your investment loan. Other features include:
Use this form to set up or change a direct debit arrangement so that you can credit or debit your bank account from your investment loan. You can use this form to request either a one-off deduction or regular deductions.
Use the Australian Standard Transfer Form (ASTF) to lodge managed funds as security on your investment loan. This includes lodging third party security. Completed forms must be returned by post and not faxed.
Things you should know
^Lending criteria applies.
# You will not be charged the first $50 (inc. GST) of brokerage on each contract note for trades settled within 60 days of account opening, up to a total value of $1,000 (inc. GST). This offer is for online trades in ASX-listed shares only (options and international equities excluded). This offer is valid for new accounts opened by 31 December 2016. The free brokerage offer is not applicable to any existing accounts, only a new integrated Westpac Online Investment Loan account. We reserve the right to terminate this offer or amend these terms and conditions at any time without notice. This offer is not redeemable for cash and is not transferable. Our normal terms and conditions apply unless otherwise specified here.
More about Westpac Online Investing
Share trading through Westpac Securities Limited ABN 39 087 924 221, AFSL 233723 ("Westpac Securities") is a service provided by Australian Investment Exchange Ltd ABN 71 076 515 930, AFSL 241400 ("the Participant"), a Participant of the ASX Group and Chi-X Australia.
The Participant is not authorised to carry on business in any jurisdiction other than Australia. Accordingly, the information contained in this website is directed to and available for Australian residents only.
Know your risk and check the details
Investment in securities and derivatives involves risk. Share prices rise and fall. The payment of dividends and the return of capital are not guaranteed. This information has been prepared without taking account of the objectives, financial situation or needs of any particular individual.
For this reason, you should consider the appropriateness of the information, having regard to your objectives, financial situation and needs and, if necessary, seek appropriate professional advice.
You should also read the , which provides you with the services the Participant and Westpac Securities can provide. In addition, you should read all relevant Product Disclosure Statements or disclosure documents.
Australian Investment Exchange Ltd ABN 71 076 515 930, AFSL 241400 tries to ensure that the information provided is complete and correct but readers are advised to check any important item(s) with us before making any decisions.
This is current as at 4 March 2015. Share trading with Westpac Online Investing is a service provided through Westpac Securities Limited ABN 39 087 924 221, AFSL 233723 ('Westpac Securities') by Australian Investment Exchange Ltd ABN 71 076 515 930, AFSL 241400 ('the Participant'), a participant of the ASX Group and Chi-X Australia. The Participant is not authorised to carry on business in any jurisdiction other than Australia. Accordingly, the information contained in this email is directed to and available for Australian residents only. You should read the Financial Services Guide ('FSG'), which provides you with the services the Participant and Westpac Securities can provide. You can access the FSG via westpac.com.au/onlineinvesting. This information has been prepared without taking account of your personal objectives, financial situation or needs. For this reason, before acting on the information you should consider whether it is appropriate to you. Investment in securities and derivatives involves risk. Share prices rise and fall. The payment of dividends and the return of capital are not guaranteed.
BT Securities Limited ABN 84 000 720 114 and Westpac Banking Corporation ABN 33 007 457 141 are together the issuers of the Westpac Online Investment Loan - Product Disclosure Statement ('PDS'). This information has been prepared without taking into account your personal objectives, financial situation or needs. For this reason, before acting on the information you should consider its appropriateness to your objectives, financial situation and needs and consider the disclosure documents which include the PDS. The PDS and other disclosure documents are relevant when deciding whether to acquire or hold this product and are available at westpac.com.au