I'm currently exposed on the stock market, of which 60% is equity and 40% is a margin loan. Is 5.2% a reasonable rate or are there better rates out there?
I am not necessarily up to speed on the interest rates for margin loans – however here are a couple of links that might be able to assist you
I am not sure if this an option for you but I'll let you know anyway. Best finance rates are on property. If you can use equity in a property you will get a better rate than as a margin loan. Having said that, this is not to be taken as financial advice. There may be other factors in your circumstances that dictate a different course of action. Cheers,
Erik has a point with his previous statement about borrowing against property will generally get you a lower interest rate.
I would recommend talking to a financial planner that is well versed in these structures and types of lending. Margin lending definitely has its pros and cons and you will generally pay a premium because of the added risk and potential volatility of the security and income stream.
As you may be able to get a lower rate with residential security, you will also be chewing up equity that could be used for other investments or purposes. On the flip side, you may be able to avoid margin calls.
I would recommend speaking to a financial planner (and probably your accountant) and obtaining professional, personal advice specific to your circumstances.