Margin Loans

How to Apply

1. Apply for a Margin Lending account - click here and follow the online application process or call Margin Lending on 1300 304 065.
2. Once your application has been processed you will be sent your 5 Digit Margin Lending Account Number. You will require this number when completing your Netwealth Margin Lending Trading Facility Application.
3. Apply for a Netwealth Margin Lending Share Trading Facility – click here.

If you have any problems call Netwealth Share Trading on 1800 888 223 for assistance.

What type of approved securities am I able to borrow against?

The Approved Securities List is provided by St George and reviewed on a regular basis. The approved list consists of ASX listed shares and Australian managed funds.

The Approved Securities List does not constitute financial or investment advice.

Only ASX listed shares can be traded online.

Can the loan be established in the name of a company or trust?

Yes. The loan can be established in the name of a company, trust or individual.

Can I borrow funds in one name/entity, with the security for the loan provided by another?

Yes. A third party who provides security is called a Third Party Security Provider and is able to pledge stock on the account. Trustees cannot provide Third Party Securities.

Are there penalties for closing the loan early?

You may incur penalties if the Margin Lending facility is closed within six months of opening, or by breaking a fixed-interest loan contract.

Will I be charged application, establishment or account keeping fees?

There are currently no application, establishment or account keeping fees for a margin lending facility opened as an individual or joint entity. Where an application is in the name of a company, trust or has a third party security provider that is a company, a fee will apply to cover legal, search and registration fees. Should you require a reprint of past statements a fee will also apply.

When would a Margin Call be made?

Your Margin Lending facility allows a 5% safety buffer for ASX listed shares and a 10% buffer for Managed Funds to cover small market fluctuations before you are required to maintain your margin.

If a fall in the market value of your portfolio results in the loan balance exceeding the total security value by more than buffer, the facility will require margin maintenance. This is referred to as Margin Call.

If this occurs, you will be required to correct the position by either reducing your loan balance or increasing the security on your facility within 24 hours. Security may be in the form of additional approved securities or cash deposited directly to your account.

If you are in a Margin Call, we will endeavour to contact you within 24 hours of the market closing (approx 4:00pm EST). However, it is your responsibility to meet Margin Calls even if we do not contact you. If you do not take any such action we have the right to sell down securities held on your portfolio to correct the shortfall.

If the Margin Call is not paid, who is held responsible for the debt?

The borrower is responsible for repayment of the loan. If the value of stock provided by either the borrower or Third Party Security Provider is sold and does not cover the liability, we will require the borrower to cover the remaining debt.

In the case of a Margin Call, either you or your nominated authorised representative may return the account to order.

How long does it take before I can start trading?

Our staff will write to you to confirm that you are able to trade using your Margin Lending account. If the facility is in the name of a company or trust, or is in more than one individual's name, the application may take longer to process.

How do I lodge shares onto my loan as security?

You can do this by sending Issuer Sponsored statements or Broker Sponsored Statements authorising St George to move the stock on your behalf.

Can I pay money into any bank account or only the one I provided bank details for?

Funds can be transferred to the account you have provided details for. If you wish to update these details, you can do so by sending a written request. You will need to complete a new change of payments form if this will be a regular transaction.

The information on this site has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on the information on this site, consider the appropriateness of the information, having regards to the individual's objectives, financial situation and needs, and, if necessary, seek appropriate professional advice. Please consider the Margin Lending Product Disclosure Statement before making any decisions about whether to acquire the financial product.