BORROWING TO INVEST
Borrowing to invest, or gearing, has long been a popular
wealth creation strategy. By enabling you to invest more money, gearing has the
potential to improve your investment returns and help you reach your financial
goals sooner.
NAB 100% Investment Loan
A NAB 100% Investment Loan provides you with 100% of funds required to access
select investments without the need to provide any initial capital.
Benefits of a NAB 100% Investment Loan
-
No margin calls except where you fail to meet your interest payment obligations
or the investment is sold or redeemed early.
- A range of interest rate
options to meet your needs
- Potential tax efficiency as the loan interest may
be tax deductible*
- No application or ongoing service fees for individual and
joint applicants
You can apply for a minimum loan amount of $20,000 for either a variable or
fixed rate loan.
For a loan that includes a combination of variable and fixed rates, the minimum
loan amount on the fixed rate component of the loan is $20,000.
Loan security
The only security required for your loan is the investment you acquire with
your NAB 100% Investment Loan.
Interest rate options
A NAB 100% Investment loan is an interest only loan for select investment
opportunities. There are a range of flexible interest rate options to meet your
needs:
| Interest rate type |
Interest payment option |
| Variable rate |
Pay interest monthly in arrears |
| Fixed rate in advance |
Pay interest in advance for 1 5 year terms |
| Fixed rate in arrears |
Pay interest monthly in arrears for 1 5 year terms |
| Combination of variable and fixed rate options |
Interest payments dependent on options selected |
Interest rates and fees
Interest rates for Man OM-IP Essential
The final interest rates for a 100% Investment Loan to invest in:
|
Interest rate type |
Interest rate (p.a.) |
| Variable rate |
9.95% |
Fixed rate in advance 1 year
2 years
3 years
4 years
5 years |
9.60%
9.50%
9.50%
9.50%
9.50% |
Fixed rate in arrears 1 year
2 years
3 years
4 years
5 years |
9.80%
9.70%
9.80%
9.80%
9.80% |
|
Cash Management Account - Effective 17 March 2008 (This rate also applies to
credit balances in 100% Investment Loan variable rate loan accounts)
|
5.89% |
Rates on Loans over $500,000 are negotiable
Final interest rates for Man OM-IP Essential provided on 13 August 2008.
Fees
-
There are no application or ongoing service fees for
individual or joint applicants.
- An
establishment fee applies for companies (including company guarantors) and
trustees applying on behalf of trusts. Details of the establishment fee can be
found in the NAB 100% Investment Loan Application.
- Applicants
or guarantors residing in Tasmania are subject to a State Government charge of
$90.50 to cover lodgement of the Power of Attorney.
- Early
repayments of a fixed rate loan (including a conversion to a variable rate
loan) may be subject to payment of economic costs.
Current investments
Your clients can use a NAB 100% Investment Loan to invest in
Man
OM-IP Essential
Investment in Man OM-IP Essential can only be made by completing the
application included with the Prospectus for the offer dated 18 April 2008 and
issued by Man Investments Limited ABN 47 002 747 480, AFSL 240581.
How to apply
To apply for a NAB 100% Investment Loan, follow these simple steps:
Step 1
Obtain a copy of the NAB 100% Investment Loan application kit
Step 2
Complete the application form.
Step 3
Submit your application form and provide supporting documentation.
Step 1 Obtain a copy of the NAB 100% Investment Loan application kit
To obtain a copy of the NAB 100% Investment Loan application kit you can:
-
Download a NAB 100% Investment Loan kit by clicking on the links below:
Step 2 Complete an Application form
Once you have read the NAB 100% Investment Loan Application kit, in particular
the Facility Terms and Cash Management Account PDS, complete your application
form.
Step 3 Submit your Application form and provide supporting documentation
Please forward your completed Application form to:
nabCapital Investor Services Group
100% Investment Loan Unit
Level 32
500 Bourke Street
MELBOURNE VIC 3000
Please note any incomplete information may delay the
establishment of your Facility.
All loan applications are subject to approval.
Other investment loan choices
NAB Margin Loan
If you already have existing shares, managed funds or cash
that you would like to use as security for a margin loan, you may like to
consider establishing a NAB Margin Lending Facility to invest in select
investment opportunities.
Find out
more about NAB Margin Lending
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