Sagging property market boosts margin loans

margin lending gearing property mortgage margin loans colonial first state macquarie bank australian share market

21 April 2006
| By Ross Kelly |

The margin loan divisions at Colonial First State, St George and Macquarie Bank are still the best in the country according to researcher Cannex, which has pointed to a lacklustre property market as a driver for increased gearing into equities.

The margin lending market has almost doubled in the last three years, catering to about 140,000 Australians.

Cannex said the main driver for the increase is the concurrent rise in the Australian share market, but little joy from property is also encouraging margin loan investments.

“Property investors can see margin lending as a similar tool to a mortgage, because it is a geared investment,” said Cannex analyst Harry Senlitonga.

According to Cannex, CFS, St George and Macquarie stand out because of their willingness to lend against a larger stock menu. The researcher also sang its praises for Suncorp, which received the next best four star rating. Senlitonga said Suncorp’s decision last year to let St George administer its margin lending facilities had made it “a much improved product”.

There are currently 13 margin lending providers in Australia. A 14th provider, Bank of Queensland, will enter the market soon.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 day 6 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

5 days 12 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 3 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 5 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

4 days 9 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

3 days 12 hours ago