A ‘no margin call’ investment loan for managed investments like ETFs, LICs, SMAs and managed funds.
NAB Equity Builder requires principal and interest monthly repayments. The bank holds a mortgage over the investment until the loan is paid off. Once the loan is fully paid the assets are 100% owned by you.
Borrowing to invest may be another effective wealth building strategy for investors looking to increase their exposure to diversified investment options.
With NAB Equity Builder – you can apply now and invest later, or whatever works best for you. Once your loan is approved, you can:
NAB Equity Builder is more suited to investors with a long term investment horizon of 3 – 10 years and with any investment decision you make, remember to consider the risks.
It’s important to know that investing in the share market carries risk and requires a long-term focus as many variables can cause volatility, both down and up. Borrowing to invest can be an effective wealth building strategy but gearing can magnify the potential for both gains and losses in assets.
Variable rate p.a. | Special rate^ |
10.00% | 8.00% |
Standard variable rates effective from 1 December 2023.
^The special offer rate is 2% discount off the standard variable rate and is available for the life of the loan. See Important Information below for more details.
To see what managed investments NAB may lend against as part of a NAB Equity Builder loan facility, please refer to the Approved Investments list.
For any queries or help with your NAB Equity Builder application, please email equity.lending@nab.com.au or call the NAB Equity Lending team on 1300 135 145.
NAB Equity Builder allows you to customise each loan program to suit your particular investment goals. You can select your preferred investments, starting loan amount, style of principal repayment, and time frame to repay the loan.
Instead of using your home as security, the managed investments bought/contributed will be held as the loan security. As there are no margin calls, price movements of the security supporting the loan won’t trigger the need for any corrective action (ie the acceleration of loan repayments, or the sale of loan security); regardless of the value of the outstanding loan.
Borrowing to invest can increase the return on your funds, when the investment outperforms the cost of borrowing. It can also allow you to increase your exposure to a preferred investment theme.
As the NAB Equity Builder loan program requires the consistent repayment of loan principal, the loan balance used to calculate loan interest is constantly decreasing.
Monthly repayments must be made consistently. If a repayment is missed a portion of the loan assets (the investments used to secure the loan) may be sold to correct the position or repay the loan. For example, if you miss a repayment of $100, then $100 worth of investments may be sold to correct the position. This may have capital gains tax consequences.
Increases in interest rates may result in your monthly loan interest payments (in combination with your monthly principal repayment obligation) being greater than you budgeted for.
This may create the need to switch into a new approved investment. The sale of an existing investment may trigger CGT consequences.
This may place a greater burden on your other sources of available cash.
Unlocking wealth opportunities and NAB Equity Builder case study: Chloe
Podcast: Saving for the your kids’ education. Saving vs investing and whether borrowing can help
How a professional adviser uses NAB Equity Builder for his clients
Find out more about the benefits of margin lending
In the press: Noel Whittaker gives thumbs up to NAB Equity Builder investment loan
Positive gearing. The better kind (with no margin calls).