Margin Lending is a loan facility such as a Line of Credit which is normally secured over a portfolio of shares.
With a Low Doc Home Loan, the lender normally takes a property as security. However, using a Low Doc Margin Loan, the security taken is normally a share portfolio.
When applying for a Low Doc Margin Loan a customer fills out a Margin Lending application and when it comes to provide financial details a “Customer Declaration Form” is filled out instead.
Once the declaration is signed, the loan approval will be treated similar to a Low Doc Home Loan (no financial verification required).
Normally, on blue chip shares, between 60-70% of the value is set as a credit limit. This is a guide only.
Full terms and conditions are contained in the lenders Letter of Offer.