The ASX has communicated to all market participants of an industry-wide ASX settlement failure that occurred on Friday the 20th of December. This failure has meant that CHESS was not able to complete market settlement on Friday and has deferred settlement to Monday the 23rd of December. For those clients who had sell trades settling on Friday we have ensured those sale proceeds have been made available to you for trading on Monday. Stock delivery for clients who had buy trades settling will need to wait until Monday before the shares become available to sell. We apologise for any inconvenience this ASX outage has caused.
Borrow to invest
Flexible terms
Flexible loan terms from 3 – 10 years.
Investment choice
Over 1000+ approved investments to choose from.
Great rates
Loans starting from $20k and a 2.0% special discount.
NAB Equity Builder
A ‘no margin call’ investment loan for managed investments like ETFs, LICs, SMAs and managed funds.
- Principal and interest investment loan
- No margin call, monthly repayments (with early pay off possible)
- Flexible loan terms from 3 - 10 years
- A variable interest rate
- Loan security is comprised of both pledged and acquired managed investments
- 2% special rate discount for the life of the loan
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.
Flexible investing
With NAB Equity Builder – you can apply now and invest later, or whatever works best for you. Once your loan is approved, you can:
- Acquire investments all at once
- Sit and wait for the right opportunity
- Break it up into smaller investments over time (the minimum loan draw down is $10k)
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.
Interest rates, plus a 2.0% discount
| 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.
Approved Investment List
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.
NEXT STEPS
Apply for NAB Equity Builder
- Read and ensure you understand the:
- Complete the application form
- Lodge security or cash against your loan
- Complete an order to purchase an investment with your loan
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.
Benefits
Greater control
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.
Greater stability
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.
Increasing loans and diversity
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.
Lower borrowing costs
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.
Risks
Investments may be sold
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.
Increasing interest rates
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.
Changes to approved investment lists
This may create the need to switch into a new approved investment. The sale of an existing investment may trigger CGT consequences.
Falling interest rates
This may place a greater burden on your other sources of available cash.
nabtrade and NAB Equity Builder
Security
You may be able to use an investment you hold in nabtrade as security against a NAB Equity Builder loan.
NAB Equity Builder lends against 21 listed ETFs and 3 LICs.
Check the approved investment list to see if your investments are on the list.
nabtrade Total Wealth
Add NAB Equity Builder investments into nabtrade Total Wealth as an off-platform asset and view it alongside your existing portfolio.
If what you invest in is listed, you’ll also have this priced for you in real time.
NAB internet banking
If you’re a NAB customer, you’ll be able to see everything within Internet Banking.
View your equity loan balance alongside your banking.
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Positive gearing. The better kind (with no margin calls).