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An award winning ‘no margin call’ investment loan for managed investments like ETFs, LICs, SMAs and managed funds.
NAB Equity Builder works like a property loan with principal and interest monthly repayments. The bank holds a mortgage over the investment until the loan is paid off. Once the loan is fully paid the assets are 100% owned by you.
Borrowing may be a cost-effective strategy for investors looking to increase their exposure to diversified investment options.
Learn how NAB Equity Builder works and how it could help you build wealth by borrowing to invest in managed investments.
With NAB Equity Builder – you can apply now and invest later, or whatever works best for you. Once your loan is approved, you can:
NAB Equity Builder is more suited to investors with a long term investment horizon of 3 – 10 years and with any investment decision you make, remember to consider the risks.
It’s important to know that investing in the share market carries risk and requires a long-term focus as many variables can cause volatility, both down and up. Borrowing to invest can be an effective wealth building strategy but gearing can magnify the potential for both gains and losses in assets.
|Variable rate p.a.||Special rate^|
Standard variable rates effective from 3 July 2023.
^The special offer rate is 2% discount off the standard variable rate and is available for the life of the loan. See Important Information below for more details.
To see what managed investments NAB may lend against as part of a NAB Equity Builder loan facility, please refer to the Approved Investments list.
For any queries or help with your NAB Equity Builder application, please email firstname.lastname@example.org or call the NAB Equity Lending team on 1300 135 145.
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.
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.
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.
Monthly repayments must be made consistently. If a repayment is missed a portion of the loan assets (the investments used to secure the loan) may be sold to correct the position or repay the loan. For example, if you miss a repayment of $100, then $100 worth of investments may be sold to correct the position. This may have capital gains tax consequences.
Increases in interest rates may result in your monthly loan interest payments (in combination with your monthly principal repayment obligation) being greater than you budgeted for.
This may create the need to switch into a new approved investment. The sale of an existing investment may trigger CGT consequences.
This may place a greater burden on your other sources of available cash.
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How a professional adviser uses NAB Equity Builder for his clients
Find out more about the benefits of margin lending
NAB Equity Builder is issued by National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 (NAB).
^The 2.0% special discount rate for variable loans applies to new NAB Equity Builder facilities drawn from 3 July 2023. The discount will apply for the life of the loan or until varied or withdrawn by NAB. For NAB Choice Package, NAB Private Package or Portfolio Package clients, this is the maximum discount when applied in conjunction with any other offer.
The information provided on this web page is intended to be of a general nature only. Any advice in this brochure has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice on this page, National Australia Bank Limited (ABN 12 004 044 937 AFSL 230686) (NAB) recommends you consider whether it is appropriate for your objectives, financial situation and needs. NAB recommends that you seek independent advice before acting on any information on this web page. The taxation information contained in this document is of a general nature. The tax consequences of investing will depend on your particular circumstances. We recommend that you seek professional tax advice before applying for a NAB Equity Builder facility.
This page is not a substitute for reading the NAB Equity Builder Facility Terms and Product Brochure. NAB is the issuer of NAB Equity Builder and recommends you consider the Facility Terms before making any decisions. The Target Market Determination for this product is available at nab.com.au/TMD
Just like with any investment decision you make, remember to consider the risks. It’s important to know that investing in the share market carries risk and requires a long-term focus as many variable can cause volatility, both down and up. Borrowing to invest can be an effective wealth building strategy but gearing can magnify the potential for both gains and losses in assets. Also interest rates can rise over time which increase the cost of implementing the strategy.
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