Margin Lending
What is a margin loan?
A margin loan is a loan account that allows you to borrow money in addition to your own, to invest in a diverse range of acceptable investments, including listed shares and managed funds.
Potential benefits
Increased returns
Access to more capital to invest may create higher returns.
Diversification
With more money to invest, you can spread your investment risk across a broader range of options.
Unlock equity
Borrowing against your existing portfolio lets you increase the size of your investment without having to sell.
Tax benefits
You may be entitled to a tax deduction for interest expenses that you incur under a margin loan.
Potential risks
Increased losses
Borrowing to invest can increase your potential returns, but it can also increase potential losses.
Market movements
The value of securities may not go up, or not enough to cover the costs of the investment.
Loan obligations
Ensure that you can fund your loan interest, fees, and charges, otherwise securities will be sold to satisfy them.
Taxation consequences
Consider the taxation consequences of a margin loan and seek professional tax advice.
Our products
Westpac Margin Loan
Our full-featured loan with a wide range of acceptable investments such as shares and managed funds, plus the ability to trade with the broker of your choice.
Online Investment Loan
Our simplified margin loan for direct investors and integrated with a Westpac Share Trading account.
Margin Loan - Wholesale
For investors who satisfy the definition of a wholesale borrower, offering the same features as the Westpac Margin Loan.
Compare products
|
Westpac Margin Loan |
Westpac Online Investment Loan |
|---|---|---|
Account establishment |
||
Apply online |
N |
Y |
Application fee |
$0 |
$0 |
Minimum credit limit |
$20,000 |
$20,000 |
Company borrowers |
Y |
N |
Trust borrowers |
Y |
N |
Wholesale borrowers |
Y |
N |
Acceptable investments |
||
ASX listed securities |
500+ |
500+ |
Unlisted managed funds |
1900+ |
100+ |
International shares |
On approval |
N |
Add-on features |
||
Call options |
Y |
N |
Risk management tools |
||
Buffer alerts |
Y |
Y |
Electronic margin call notification |
Y |
Y |
Capabilities |
||
View your loan & investments online 24/7 |
Y |
Y |
Choice of broker |
Y |
Westpac Share Trading only |
Borrow against acceptable investments held on Platforms and Managed Accounts |
Y |
N |
More information on margin lending
Frequently asked questions
Both have the same features but the Westpac Margin Loan – Wholesale is only available to clients that qualify as a wholesale investor and has a more streamlined application process - you only need to provide an accountant’s certificate to certify your status as a wholesale investor to support your application.
Although both are margin loan accounts, primary differences include:
- The Westpac Margin Loan is also available to company and trust investors (in addition to individual and joint borrowers). The Westpac Online Investment Loan is only available to individual and joint borrowers.
- You can utilise any broker of your choosing to trade on the Westpac Margin Loan, whereas you can only utilise Westpac Share Trading on the Westpac Online Investment Loan.
- The Westpac Margin Loan has over 1,900 managed funds on the Acceptable Securities List and the Westpac Online Investment Loan has approximately 100.
Westpac Margin Loan
- Individuals and joint borrowers aged over 18 years and residing in Australia
- Individual Australian trustees for family or discretionary trusts
- Australian companies
- Australian company trustees for family or discretionary trusts
Westpac Online Investment Loan
- Individuals and joint borrowers aged over 18 years and residing in Australia
Westpac Margin Loan - Wholesale
- Wholesale clients that can provide us with a certificate from a qualified accountant (as defined in the Corporations Act) that states they have either:
- Net assets of at least AUD$2.5million, or
- Gross income for each of the last two financial years of at least AUD$250,000 a year
Westpac Margin Loan
Visit the Westpac Margin Loan page and select Apply now, which will take you to the application page.
Westpac Margin Loan – Wholesale
Visit the Westpac Margin Loan - Wholesale page and go to the ‘Ready to apply?’ section.
Westpac Online Investment Loan
Visit the Westpac Online Investment Loan page and select Get started, which will take you to the application form.
Things you should know
Westpac Margin Lending Facility Agreement (PDF 418KB)
Westpac Margin Loan Product Disclosure Statement (PDF 269KB)
Westpac Online Investment Loan Facility Agreement (PDF 425KB)
Westpac Online Investment Loan Product Disclosure Statement (PDF 301KB)
BT Securities Limited Financial Services Guide (PDF 289KB)
BT Securities Limited ABN 84 000 720 114 and Westpac Banking Corporation ABN 33 007 457 141 are together the issuers of the Westpac Margin Lending Margin Loan - Product Disclosure Statement (PDS). This information has been prepared without taking into account your personal objectives, financial situation or needs so, before acting on it, you should consider its appropriateness in regard to these factors. The PDS and other disclosure documents are relevant when deciding whether to acquire or hold this product and can be obtained by calling 1800 816 222 or online at www.westpac.com.au
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 so, before acting on it, you should consider its appropriateness in regard to these factors. The PDS and other disclosure documents are relevant when deciding whether to acquire or hold this product and can be obtained by calling 1800 816 222 or online at www.westpac.com.au
Westpac Share Trading is a service provided 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 market Participant of the Australian Securities Exchange Limited (ASX) and Cboe Australia, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. 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.