NAB Equity Builder allows you to customise each loan program to suit your particular investment goals. You can select your preferred investments, starting loan amount, style of principal repayment, and time frame to repay the loan.
Instead of using your home as security, the managed investments bought/contributed will be held as the loan security. As there are no margin calls, price movements of the security supporting the loan won’t trigger the need for any corrective action (ie the acceleration of loan repayments, or the sale of loan security); regardless of the value of the outstanding loan.
Increasing loans and diversity
Borrowing to invest can increase the return on your funds, when the investment outperforms the cost of borrowing. It can also allow you to increase your exposure to a preferred investment theme.
Lower borrowing costs
As the NAB Equity Builder loan program requires the consistent repayment of loan principal, the loan balance used to calculate loan interest is constantly decreasing.