Colonial Margin Lending

Colonial Margin Loan

Effective from Friday, 14 March 2008

Interest rates are subject to change without notice.

	Standard Rate - Paid Yearly in Advance	Standard Rate - Paid Monthly in Arrears
30 Day Variable^#	N/A	10.50% pa
1 Year Fixed Rate¹	10.40% pa	10.50% pa^*
2 Year Fixed Rate¹	10.40% pa^*	10.50% pa^*
3 Year Fixed Rate¹	10.40% pa^*	10.50% pa^*
5 Year Fixed Rate¹	10.40% pa^*	10.50% pa^*

^#	Principal and interest repayment option is only available with the 30-day variable rate.
^*	Not available for Monthly Regular Gearing Facilities.
¹	All fixed rates are indications only. Firm rates on application. Minimum loan amount applies.

Gearing Information

Margin lending allows you to borrow money, add it to your own savings or equity and to use the total for investment purposes.

Borrowing to invest allows you to enhance your potential for wealth creation by making a larger investment than would be possible by only using your own funds.

Assumptions: The illustration below uses an equity based managed fund for a Margin Loan with Regular Savings Plan (RSP) based on an initial gearing level of 50%. Investment values are considered pre-tax. This example excludes Interest Charges, Fees and Brokerage.



	Application Form (938kb)
	Accepted ASX Listed Equities (62kb)
	Accepted Managed Funds (96kb)

Example using a Margin Loan to invest in Colonial First State - Australian Share Fund

Initial Investment Only

Initial Investment of $5,000 invested. No regular monthly savings plan is entered into and distributions are reinvested.

Geared Investment

Initial Investment of $5,000 plus borrowed funds of $5,000 invested. No regular monthly savings plan is entered into and distributions are reinvested.

Non-Geared with RSP

Initial Investment of $5,000 plus regular monthly investment of $250 from own equity. Distributions are reinvested.

Geared with RSP

Initial Investment of $5,000 plus borrowed funds of $5,000 invested. Regular monthly contribution of $500 invested where $250 borrowed monthly and $250 invested from own equity. Distributions are reinvested.

Please Note: This example is intended as an illustration only. Colonial First State Australian Share Fund is issued by Colonial First State Investments Limited ABN 98 002 348 352 AFSL 232468 , a wholly owned subsidiary of Commonwealth Bank of Australia . A Product Disclosure Statement ('PDS') describing the Colonial First State Australian Share Fund is available from your financial adviser or by contacting Colonial First State on 13 13 36. You should consider the PDS before making a decision about the Colonial First State Australian Share Fund.

Commonwealth Bank of Australia and its subsidiaries do not guarantee or in any way stand behind the performance of the Colonial First State Australian Share Fund or the repayment of capital by the Colonial First State Australian Share Fund. Investments in the Colonial First State Australian Share Fund are not deposits or other liabilities of Commonwealth Bank of Australia or its subsidiaries and investment-type products are subject to investment risk, including delays in repayment and loss of income and capital invested.

Past performance is not a reliable indicator of future performance.

Taxation benefits will vary according to individual circumstances and are subject to changes in legislation.

Colonial Geared Investments is part of the Commonwealth Bank of Australia ABN 48 123 123 124

Simply download the Application Form above. It’s that easy!

For more information about margin lending and Colonial Geared Investments please click here


return to previous page