Why choose the Wholesale Investment Loan?
Minimum credit limit of $1 million to invest in shares and managed funds, using your existing investments as security.
Fast and simple application process - no financials required for credit limits below $5 million.
All applications get a dedicated relationship manager assigned to oversee the application process.
Competitive interest rates.
Higher lending values than retail margin loans for diversified portfolios and bonus stocks.
Note: For applications with credit limits higher than $5 million or where bespoke arrangements are required, a credit assessment will be required including a financial assessment.
What are the key differences between Wholesale Investment Loans and standard margin loans?
|
Wholesale Loan |
Standard Margin Loan |
|
|
Minimum Credit Limit |
$1,000,000 |
$20,000 |
|
Higher Portfolio LVR (PLVR) |
5% higher than standard margin loan PLVR (maximum of 80% PLVR) |
No |
|
Bonus Stock LVR Model |
50% LVR + All stocks receiving less than 45% standard LVR on standard margin loan are bonus stocks with a 50% LVR in the wholesale margin loan |
40% LVR |
|
Standard LVR |
Standard LVRs are 25% lower than PLVR |
Standard LVRs are 5% lower than PLVR |
LVR is the loan to value ratio
Portfolio LVR (PLVR) is enabled in diversified portfolios with 5 or more securities with Standard LVR.
Bonus Stocks (LVR) is applicable for diversified Portfolio's only
Standard LVR applies if a security makes up more than 50% of the portfolio market value of lendable securities or is held through a Wrap Platform/Portfolio Service.
Concentration Limit is a restriction on a stock's % contribution to the value of a portfolio
Who is an Investment Loan for Wholesale Clients suitable for?
The Wholesale Margin Loan is suitable for individuals and entities that qualify as wholesale via one of the below criteria:
1. All applicants and entities have an accountants certificate issued by a qualified accountant within the last 6 months stating that they have net assets of at least $2.5 million or have a gross income for each of the last 2 financial years of at least $250,000 p.a. OR
2. Will be making a total initial unencumbered contribution to their margin loan of at least $2.5 million.
For more information on an Investment Loan for Wholesale Clients, or for any other questions related to your CommSec Margin Loan, please call your Relationship Manager on 1300 307 715 (Please select option 2) or email commseconesupport@commsec.com.au
Disclaimer:
CommSec Margin Loan and the Wholesale Investment Loan are issued by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945. This product is administered by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec),a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia. CommSec is a Market Participant of ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Applications for Margin Loans are subject to approval. Fees and charges apply.
The information has been prepared without taking account your objectives, financial situation or needs. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to their objectives, financial situation or needs, and, if necessary, seek appropriate professional advice. You can view the CommSec Margin Loan Product Disclosure Statement, Margin Loan Terms and Conditions, Share Trading Terms and Conditions, Best Execution Statement and Financial Services Guide, and should consider them before making any decision about these products and services.