Leveraged first to pass on Reserve Bank rate cut in full
Leveraged, part of the Bendigo & Adelaide Bank group, has reduced variable interest rates across their Leveraged Equities Margin Loan and Investment Funds Multiplier products by 0.25% per annum.† The new rates take effect from Monday May 25, 2015.
David Arnold, Head of Leveraged said: "Historically low interest rates are great news for borrowers and we are pleased to be able to announce that Leveraged will again be first to pass on the savings".
"Many of our customers have found gearing to be a tax effective strategy and in the run-up to the end of the financial year in a few weeks, we have seen some sizeable new facilities coming to the business.
"This is partly due to investors positioning themselves, ready to choose equities that they view as ripe for addition to their investment portfolio when the price is right, but we are also seeing a lot of activity in the traditional 'pre-pay' period before June 30, when brokers and their clients choose to lock in their interest rate for the next year and pre-pay interest payments in this financial year.
"Investors new to gearing are borrowing to invest, primarily in order to diversify their portfolios and obtain greater market exposure.† Low interest rates mean that with lower returns on cash, some younger investors are finding our Instalment Plus facility a great way to build a share portfolio starting out with as little as $1,000.
"Leveraged is committed to providing a premium customer experience and helping customers and their advisers to mitigate risk using our advanced portfolio monitoring tools and client nominated "target gearing" alerts.
"I'd encourage people interested in gearing as a strategy to visit the resources available on our new-look website and see why as Australian industry pioneers, we've earned our reputation as the professionalís choice," Mr Arnold concluded.