A Margin Loan can be utilised to purchase just one stock. However, before considering in investing in just one stock, you will need to consider how much you wish to borrow. In the case of the top 20 shares listed on the ASX, brokers can lend up to 65% of the current value of these shares, of course, the scenario can change if more than one stock is purchased.
A 65% lending value is allocated on a single share, this increases to 70% if you hold 2 to 4 shares and 75% if 5 or more approved shares are held in your portfolio. This example generally applies to the top 20 shares and lending values will vary according to the shares being considered, and are subject to change.
If you are looking to purchase $10,000 of a stock which has a lending value of 65%, you will need to provide us with 35% of the value upfront or $3,500 in cash. Alternatively, if you already hold shares, and they are listed on our approved shares list, you will be able to utilise these shares to borrow funds on a margin loan. Of course, depending on what shares you currently hold will determine how much you can borrow.
