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Investment Loan

Multiply your investment power

Combining a wide range of accepted managed funds, platforms and Australian equities with class-leading features, our investment loan offers the flexibility to help meet investor needs and potentially accelerate their investment returns.

Established as Colonial Geared Investments in 1996 and backed by the Commonwealth Bank of Australia, the CommSec Adviser Services Investment Loan has built a strong reputation on features and value for money.

How-to Videos

'How-to Videos'

View our step by step demonstrations.

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1800 252 351 (Option 3)

Between 8.30am and 6.00pm, Monday to Friday.

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Features & Benefits

Experience

Experience

Formerly Colonial Geared Investments, we’ve been providing award-winning and innovative gearing solutions to Australian investors
since 1996.
Strength

Strength

CommSec Adviser Services Investment Loans are backed by Australia’s biggest bank, the Commonwealth Bank of Australia.
Service

Service

We’ve built our business on understanding advisers and their clients so that we can better meet your needs. Our dedicated Transition Services further demonstrates our service to you.
Holistic investment management

Holistic investment management

View and manage your clients’ Investment Loans alongside their CommSec Adviser Services Trading and Accelerator Cash Accounts.
National Support Team

National Support Team

Our dedicated Adviser Service Team, Relationship Managers and national network of BDMs ensure support is never far away.
Extensive accepted securities list

Extensive accepted securities list

Enjoy investment flexibility with over 500 shares, 2,000 managed funds and 80 platforms on our accepted securities list.
Adviser resources

Adviser resources

Our client report centre, case studies, lending simulators and data feeds into your planning software help you better manage your client's investments.
Real time pricing and loan status

Real time pricing and loan status

You can quickly view a client’s loan position with real time information shown in a single screen on our website.

Interest Rates

Effective from 10 March 2017

Interest rates are subject to change without notice. All fixed rates are indicative only. Other fixed terms and firm rates available on application.

Paid Yearly In Advance*Paid Monthly in Arrears*
Variable Rate N/A 6.74% p.a.
1 Year Fixed Rate 6.49% p.a. 6.63% p.a.
2 Year Fixed Rate 6.65% p.a. 6.79% p.a.
3 Year Fixed Rate 6.94% p.a. 7.08% p.a.
5 Year Fixed Rate 7.24% p.a. 7.38% p.a.
* Rates include trail commission

Fees & Charges

Effective from 01 July 2016

This information forms part of the CommSec Adviser Services Investment Loan Product Disclosure Statement (PDS).

Early Repayment Adjustments Fixed Interest Rate Loans: An early repayment adjustment may be payable after allowing for a refund of any interest paid in advance. The fee is calculated using the criteria in the Investment Lending Terms and Conditions booklet.
Dishonour Fees Any cheque or direct debit rejection will incur a fee of $30. This fee will be charged to the loan account at the time of the rejection or on termination of the loan facility.
Paper Statement Fee We make electronic statements available free of charge. A $1.95 per statement fee applies if you request to receive paper statements or we send you paper statements because you have not provided a valid email address to us.
Personal Property Securities Register (PPSR) Registration Fee A government fee may be payable to register or amend the registration of the Security Interest on the PPSR.
Trust Investigation Fee

A minimum fee of approximately $200 will apply for Trust Deed Investigation if a Trust is the borrower or security provider to the loan and the Trust’s total loan exposure to the Bank will be greater than $500,000.

The fee will be charged to the loan, unless there is insufficient collateral, in which case we will debit the nominated bank account.

About the CommSec Adviser Services Investment Loan

Who is it designed for?

Advisers and Planners wanting to offer their clients a flexible investment loan that:

  • Unlocks the equity in their existing shareholdings so they can build a larger portfolio and multiply the opportunity for capital gains;
  • Allows them to diversify into a greater number of assets;
  • Enables them to quickly take advantage of market opportunities;
  • Has the potential to generate higher capital gains over the medium to long term;
  • Can increase an income stream from greater exposure to dividends and capital gains; and
  • Can enable tax effective investment opportunities^.

What features do you receive?

  • A wide range of accepted securities with over 500 shares, 2,000 managed funds and 80 platforms/portfolio services
  • No application fees for most application types (excluding Trust Applications)
  • Choice of competitive variable and fixed interest rates (for a variety of terms including one, two, three or five years) with interest payable yearly in advance or monthly in arrears
  • Online access to account information for you and your client via the CommSec Adviser Services website
  • Regular gearing option available
  • 10% buffer to allow for market fluctuations before a margin call is triggered
  • A commitment to responsible lending

How do we support you?

  • Account Managers specialising in gearing solutions for advisers and their clients
  • Dedicated Adviser Service Team
  • Relationship Managers for high value adviser support
  • Investment lending strategies
  • Access to CommSec Premium Research
  • Investment lending simulators including ‘Geared vs non-geared’, ‘What-If’, ‘Cash flow neutral gearing’ & ‘Gearing break-even’ (to access all investment lending simulators, please login to the Investment Lending website using your CommSec Adviser Services User ID and Password)
  • Business development support including regional servicing via our national team of Business Development Managers
  • Training and education material including case studies
  • Client seminars

For more information about the CommSec Adviser Services Investment Loan, see the Investment Lending Explained Flyer (PDF).

The CommSec Adviser Services Investment Loan is provided by the Commonwealth Bank of Australia ABN 48 123 123 124, administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814. Applications are subject to credit approval. Fees and charges apply. This information forms part of the Investment Loan Product Disclosure Statement (PDS) for CommSec Adviser Services Investment Loans.

Please consider the Investment Loan Product Disclosure Statement before making any decisions about whether to acquire the financial product. Only investors who fully understand the risks associated with gearing into investments should apply.

^Taxation outcomes can vary according to individual circumstances and are subject to changes in legislation.

Accepted Securities

The Accepted Securities Lists (ASL) below shows the percentage of the value of a share and managed fund that we will lend you if it is held as security against your Investment Loan. This percentage is referred to as the Borrowing Limit.

The LVR Changes List outlines the changes to the Accepted Securities List in the past calendar month.

Please note that the Accepted Securities Lists are subject to change at any time without notice. Please review your client's loan positions in light of the updates to the Approved Securities Lists.

The CommSec Adviser Services Investment Loan is provided by the Commonwealth Bank of Australia ABN 48 123 123 124, administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814. Applications are subject to credit approval. Fees and charges apply. This information forms part of the Investment Loan Product Disclosure Statement (PDS) for CommSec Adviser Services Investment Loans.

Please consider the Investment Loan Product Disclosure Statement before making any decisions about whether to acquire the financial product. Only investors who fully understand the risks associated with gearing into investments should apply.

Borrowing & Risk

Risk Management

Borrowing to invest can multiply your investment returns in a rising market. However, it can also multiply your investment losses if the market declines and your investments perform poorly. Some of the risks of using an investment loan include:

  • Returns will be magnified, for both positive and negative returns;
  • Interest rates may rise, increasing interest costs;
  • Borrowing limits may be reduced, increasing the potential for a Margin Call;
  • Margin Calls may require the sale of assets at unfavourable prices;
  • Taxation legislation may change.

Managing the risks of an investment loan


There are a number of things you can do to reduce the risks associated with an investment loan. They include:

  • Don’t borrow to the maximum permitted gearing level (i.e. the Base LSR)
  • Ensure that your portfolio is adequately diversified
  • Reinvest distributions and dividends
  • Pay your interest costs instead of capitalising them
  • Don’t rely on investment income to cover your interest costs
  • Have a cash reserve available to avoid or cover Margin Calls
  • Regularly review your portfolio and gearing level
  • If your account is in buffer, use the time to be proactive and avoid a margin call
  • Regularly monitor your loan position and be prepared to take action quickly

Your financial adviser can help you plan the best way for you to manage margin calls.

Managing the risks of an investment loan

Control your LSR before triggering a margin call

It is important to regularly monitor the status of your investment loan. A downturn in the market or a reduction in the borrowing limit of a listed security or fund securing your investment loan may move your Current LSR closer to your Base and Margin Call LSRs.

Investors should always aim to keep their Current LSR below the Base LSR – the maximum permitted level of gearing. Once the Current LSR moves above the Base LSR, the investment loan is in the ‘Buffer’. If the Current LSR reaches and exceeds the Margin Call LSR the investor will be in Margin Call and will be required to bring the Current LSR back below the Base LSR. This is usually done by reducing the loan balance and/or adding approved securities to the portfolio.


Example

Control your LSR before triggering a margin call

The CommSec Adviser Services Investment Loan is provided by the Commonwealth Bank of Australia ABN 48 123 123 124, administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814. Applications are subject to credit approval. Fees and charges apply. This information forms part of the Investment Loan Product Disclosure Statement (PDS) for CommSec Adviser Services Investment Loans.

Please consider the Investment Loan Product Disclosure Statement before making any decisions about whether to acquire the financial product. Only investors who fully understand the risks associated with gearing into investments should apply.

Forms

Incorporation by Reference Documents

1. Accepted ASX Listed Securities List*

Contains all accepted exchange traded equities and ETFs and their borrowing limit.
Updated: 11/12/2017

2. Accepted Managed Funds List*

Contains all accepted managed funds and platforms and their borrowing limit.
Updated: 11/12/2017

3. LVR Changes List*

The LVR Changes List outlines the changes to the Accepted Securities List in the past calendar month.
Updated: 04/12/2017

4. Interest Rates

This PDF contains the latest interest rates for the CommSec Adviser Services Investment Loan.
Updated: 10/03/2017

* Please note that the Accepted Securities Lists are subject to change at any time without notice. Please review your client's loan positions in light of the updates to the Approved Securities Lists.

Account Origination

Account Application Forms

Apply for your client's account via online, Smart PDF or standard PDF form. Please choose the form that best suits your needs. For Trading account application, please ensure clients are also made aware of our Best Execution Policy.

  • 5. Smart PDF Download - Investment Lending, Cash &/or Trading
    Right click, save to your computer (no tablets or mobiles) and open in Adobe Reader.
  • 6. Standard PDF - Investment Lending

7. Product Disclosure Statement (PDS)

Contains important information about the CommSec Adviser Services Investment Loan.

8. Terms and Conditions

Contains the Terms and Conditions for the CommSec Adviser Services Investment Loan.

9. Fees and Charges

Outlines the Fees and Charges for the CommSec Adviser Services
Investment Loan.

10. Hints and Tips for Application Form

Use this guide to ensure all required information and supporting documents
are provided.

11. Wholesale Client Form

Use this form to identify your client as a wholesale client. This form and the required supporting evidence must be submitted with the application form for commission to be paid on the Accelerator Cash Account.

12. Identification Documentation Requirements

Outlines the process for certifying identification documentation including acceptable documents, how to certify documents and a list of people who can certify ID.

13. Job and Industry Classifications List

Use this form for the list of eligible Job Category and Job Types for individuals and Industry Category and Industry Type for companies and trusts.

14. Individual Tax Residency Self-Certification Form

Use this form to declare your country/ies of tax residency where it was not provided on the application form.

15. Organisation Tax Residency Self-Certification Form

Company/Trust applicants use this form to declare your country/ies of tax residency where it was not provided on the application form.

16. Individual Certification Form

Individual/Joint/Third Party Mortgagor applicants use this form to declare your citizenship/residency/tax status where it was not provided on the
application form.

17. Entity Classification Form

Company/Trust applicants use this form to declare your primary business activity where it was not provided on the application form.

FSC Identification Forms

FSC (IFSA) Identification Forms to assist with client identification process.

  • 18. Individuals and Sole Traders
  • 19. Australian Companies
  • 20. Australian Regulated Trusts
    For SMSFs please use the Australian Regulated Trusts Form.
  • 21. Australian Unregulated Trusts

Customer Identification Checklists

Checklist to understand what customer information is collected and verified under AML/CTF obligations.

  • 22. Individual Customer
  • 23. Australian Domestic Proprietary Company
  • 24. Australian Listed Public Company
  • 25. Regulated Trust
  • 26. Unregulated Trust
  • 27. Self Managed Superannuation Fund
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Account Administration and Maintenance

28. New Adviser Form

Complete this form to setup an adviser from your dealer group to be able to offer Trading, Cash, Investment Loans and/or CALIA+ to clients.

29. Additional Adviser Authority Form

Use this form to provide an additional adviser or adviser assistant with access to an existing primary adviser's account.

30. Change or Removal of Adviser Form

Use this form to nominate a new adviser or remove an existing adviser.

31. Broker to Broker Transfer Form

Use this form to transfer shares from your client’s existing sponsoring broker to CommSec Adviser Services to be used as collateral against your client’s CommSec Adviser Services Investment Loan.

32. Change of Personal Details Form

Use this form to update your client’s current postal and residential address, contact details and statement delivery preferences.

33. Credit Limit Increase Application Form

Use this form to apply for an increase to your client's approved credit limit.

34. Direct Debit/Direct Credit Request Form

Use this form to change the bank account where Commonwealth Bank of Australia deposits to and withdraws money from.

35. Fixed Interest Request Form

Use this form to fix a required amount and pre-pay the interest on that amount.

36. Loan Closure or Repayment Form

Use this form to close or repay your client's investment loan.

37. Listed Securities Settlement Instructions

If you trade ASX listed equities through an external broker, you can provide this instructions sheet to ensure settlement through the investment loan.

38. Refinance Authority Form

Use this form to refinance a loan from another margin lender.

39. Managed Fund Investment Form

Use this form to lodge managed funds to be used as collateral on your client’s loan.

40. Redemption, Reinvestment & Switch Form

Use this form to redeem all or some of your client’s managed funds held on their Investment Loan including to reinvest with another fund manager.

41. Regular Gearing Amendment Form

Use this form to setup, amend or suspend your client’s regular contribution payments.

42. Standard Transfer Form - Security Lodgement

Use this form to transfer your client’s managed funds to be used as collateral on their CommSec Adviser Services Investment Loan.

43. Standard Transfer Form - Security Release

Complete this form to release managed fund investments used as collateral on the investment loan.

44. Accelerator Cash Account Security Lodgement Form

Use this form to lodge your client's Commonwealth Bank Accelerator Cash Account as security on their CommSec Adviser Services Investment Loan.

45. Investment Loan Covered Call Agreement Form

Use this form to allow the Lender to lodge stock as collateral for Covered Calls.

46. Statutory Declaration

Use this form in conjunction with the Standard Transfer form to declare there is no consideration on the security being transferred.

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This information was prepared by CommSec Adviser Services, a brand of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945, administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 80 067 254 399 AFSL 238614, a Participant of the ASX Group and Chi-X Australia. Only investors who fully understand the risks associated with gearing into investments should apply. Applications are subject to credit approval. Fees and charges apply. Please consider the Product Disclosure Statement (PDS) and Terms and Conditions, issued by the Bank before making any decision about the product.

Resources

'How-to Videos'

Account Origination

'Smart' PDF Application Form

The Smart PDF application form allows you to open Investment Loan, Trading and Cash accounts or any combination of the three in a single application form.

New Investment Management Experience

Overview

Part 1: Logging In

Part 2: Locating your Clients

Part 3: Smart Search & Sort

Part 4: Loan Warnings & Visual Cues

Part 5: Loan Feature Identification

Investment Lending Website Integration Webinar Recording

Website Education

eSubmit

You can now securely submit your clients’ applications, maintenance forms, supporting documentation and adviser forms online in a few easy steps.

Action Centre

In the Action Centre, you will be able to view online client account application progress as well as managing maturing Term Deposits for your clients.

Dashboard

When logged into the CommSec Adviser Services website you’ll see your dashboard featuring a client and various news and market widgets.

Online Demonstration

Learn how our investment loan offers the flexibility to help meet investor needs and potentially accelerate their investment returns.

Interest Rate Sheet

This PDF contains the latest interest rates for the CommSec Adviser Services Investment Loan.
Updated: 30/08/2016

Tools & Calculators

What-if Calculator

Allows you to test a combination of cash and security transactions and determine their effect on the current position of an investment loan. Also assists with the resolution of margin calls by providing the amounts required for each possible transaction option to clear the margin call.

Fixed vs Variable Interest Calculator

This calculator allows you to determine your potential interest savings between a fixed and variable interest rate on your loan balance over different terms.

Geared vs Non-geared Break-even Calculator

Have you ever wondered what investment returns are required before a geared investment strategy will outperform and non-geared one? We’ve taken the guess work out and have developed a simple calculator that will determine the minimum capital growth rate or income yield that will result in a geared investment strategy outperforming the non-geared equivalent.

Cash Flow Neutral Gearing Calculator

This calculator helps you develop a cash flow neutral gearing strategy for your clients by establishing the minimum income yield required or maximum gearing level that will allow your clients to achieve a cash flow neutral to positively geared investment strategy.

Investment Loan Gearing Simulator

Our Investment Loan Gearing Simulator is designed to allow advisors to quickly and easily demonstrate the advantages of utilising a geared investment strategy over a non-geared investment strategy. It outputs the expected outcome of each strategy over the specified term, offers many special features and also allows for regular gearing plans.

Debt Strategy Simulator

The Debt Strategy Simulator allows advisers to compare the wealth outcomes of traditional debt elimination strategies to a debt optimisation (debt recycling) strategy. The simulator requires the input of various assumptions and provides the outcomes of these strategies over a 30 year period using graphs and tables which can be printed or copied and pasted into documents such as SOAs and emails.

Case Studies

Creating a Portfolio with Gearing

Borrowing to invest (often referred to as gearing) offers the potential to grow wealth at a faster rate when compared to not gearing. Using an Investment Loan your clients can invest into listed securities or managed funds and potentially accelerate their returns.

Starting Out

Even with the best intentions and a good income, building wealth can be a slow process - especially if you want to enjoy a little bit of life at the same time. But with some savings, a budget and the right financial advice, you can create an investment portfolio and reach your goals sooner.

Using Your Business to Accumulate Wealth

Owning a business can be a challenging yet rewarding experience. Aside from the day-to-day issues of managing the business, it's also important to plan for the future and invest any profits wisely. Should you pay off debt, expand the business, or diversify into other income producing assets? With the right advice you can develop a strategy that will maximise your wealth and generate additional income.

Using Investment Income to Build a Larger Portfolio

For many Australians the idea of borrowing money to create a larger investment portfolio seems out of reach. With income allocated to rent or a mortgage, living expenses and the occasional holiday, finding the extra cash to meet interest costs seems almost impossible. But with the right financial advice many Australians can build a larger investment portfolio, by using investment income to meet interest costs.

Using Your Shares to Build Wealth

Most successful investors would agree that the hardest part was getting started. Having a goal in mind, setting a budget and picking what to invest in are all parts of the typical plan ... but is it possible to start investing sooner rather than later and achieve your goals even earlier?

Strategy – Lump sum gearing

This strategy involves an investor combining a single equity contribution with a borrowed amount for investment. The total amount may be invested in managed funds, ASX listed securities or a combination of the two. This strategy puts your money to work immediately and provides full exposure to movements in share and unit prices. The flexibility of the facility also allows you to increase or decrease your investment exposure at any time.

Strategy – Regular gearing

This strategy combines the power of an investment loan with all the benefits of a disciplined savings plan. A regular gearing strategy automatically combines your monthly cash contributions with a borrowed amount for investment. Regular gearing is suitable to investors who don’t have a large amount to invest, wish to use a more conservative entry strategy or want to adopt a ‘dollar cost averaging’ strategy.

Guide to Investment Services

Learn about our full range of products and services to help determine which one is right for you when investing on behalf of your clients.

Guide to Transition Services

Learn how our dedicated transition team can manage the whole transition process from start to finish.

Statement of Advice Guidance Wording

Use this wording as a guide when creating your own SOAs.

Client Brochures

Investment Lending Explained Booklet

Client Information Sheet

Geared vs Non-geared Break-even Analysis

Gearing into Property or Shares

A Timely Fix: Interest Rate Options For Your Investment Loan

Fall Before Call

The General Cycle of Market Emotions

How to use the Buy and Write Options Strategy

Exercise your Company Options

This information was prepared by CommSec Adviser Services, a brand of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945, administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 80 067 254 399 AFSL 238614, a Participant of the ASX Group and Chi-X Australia. Only investors who fully understand the risks associated with gearing into investments should apply. Applications are subject to credit approval. Fees and charges apply. Please consider the Product Disclosure Statement (PDS) and Terms and Conditions, issued by the Bank before making any decision about the product.

FAQs

What types of Investment Loans do you offer?

We offer two types of Investment Loans with slightly different features to suit different investor needs:

  • one with a 10% buffer and features aimed at investors predominantly investing into Managed Funds; and
  • one with a 5% buffer and features aimed at investors predominantly investing into direct listed equities.

There are also other different product features such as LVRs and margin call clearance time which can be viewed on either the Accepted ASX Listed Equities list or Accepted Managed Fund list.


What securities do you lend against?

We have a comprehensive accepted securities list with over 500 ASX Listed Securities, 2,000 Managed Funds and 80 Investment Platforms. Each accepted security has a lending ratio which indicates the maximum we can lend against. Our lending ratios are generally between 40% up to 80% depending on the investment loan.


What types of Investment Loan do you offer?

We offer two types of Investment Loan with slightly different features to suit different investor needs:

  • one with a 10% buffer and features aimed at investors predominantly investing into Managed Funds; and
  • one with a 5% buffer and features at investors predominantly investing into direct listed equities.

How much can my clients borrow?

The maximum amount your clients can borrow depends on:

  • How much money they have to invest or the value of the assets they provide as security.
  • Which shares or managed funds your clients invest in, as we lend different amount for different types of investments.
  • The Borrowing Limit for each accepted security is set out in our Accepted Securities List. Borrowing Limits, which we determine, may change from time to time at our discretion.

What is a Margin Call?

A Margin Call occurs when:

  • Your client’s current LVR exceeds the Margin Call LVR; or
  • Your client’s current LVR exceeds the Maximum Gearing Ratio

A Margin Call can occur when:

  • The loan value increases due to withdrawals or interest capitalisation;
  • The market value of your client’s portfolio falls;
  • We reduce the LVR of an investment securing your client’s investment loan; or
  • We reduce the Buffer amount

What actions does CommSec Adviser Services take in the event of a Margin Call?

  • We will take reasonable steps to notify you and your affected client(s) by SMS, email or phone. You must ensure you are contactable at all times in the event of a Margin Call and keep us informed of any changes to your contact details and your clients'.
  • Your clients' gearing level must be adjusted within the timeframes stipulated in the Terms & Conditions so that it is below the lower of:
    • The Base LVR; and
    • The Maximum Gearing Ratio

How do my clients resolve a Margin Call?

If a Margin Call is triggered on your client’s account, the following resolutions are available:

  • Reduce the loan balance by depositing money into the investment loan;
  • Add accepted shares or managed funds to increase portfolio value; or
  • Sell sufficient amount in the portfolio to reduce loan balance and gearing level

What are the risks?

All investments are subject to risk. This means that your client may lose money on their investments or fail to meet their financial objectives.

The key risks of an Investment Loan include:

  • Adverse market conditions may result in portfolio value being reduced and subsequently gearing level may increase, triggering a Margin Call.
  • We may reduce or remove the LVR applied to some or all of your clients' investments, or their portfolio as a whole at any time, which may result in a Margin Call.
  • The variable interest rate may increase resulting in higher interest costs, which may exceed the portfolio’s return.
  • Margin Calls may require investments to be sold by you or us quickly at unfavourable prices and may trigger unwanted capital gains or losses if your client is unprepared.
  • Tax legislations or marginal tax rates may change and have an adverse impact on the client’s tax position.
  • The loss of any assets (including property) if they have been mortgaged as security or to provide security to the Investment Loan.
  • Default events or enforcement events (as defined in the Terms & Conditions) occurring. The consequences of such an event occurring include all amounts owing becoming immediately payable. Default events include a materially-adverse change to your client’s financial position, or to the financial position of any Guarantor or Mortgagor; and/or where all the All Ordinaries Index falls by 10% or more in any one trading day or by 20% or more over any three consecutive trading days.
  • The client’s financial situation may materially change, adversely affecting their investment loan.
  • Adverse market and/or security specific conditions may result in the value of their security being insufficient to repay their loan.

For general information on the risks involved, visit www.moneysmart.gov.au/investing/borrowing-to-invest.


How can my clients manage the risks of an investment loan?

There are a number of things you can do to reduce the risks associated with an investment loan. They include:

  • Don’t borrow to the maximum permitted gearing level (i.e. the Base LVR)
  • Diversification may help to smooth out volatility, making a margin call less likely. When you spread your portfolio across different companies and sectors, a fall in the value of one investment may be offset by a rise in the value of another.
  • Reinvest distributions and dividends into your investment loan which can lower your gearing level.
  • Pay your interest costs instead of capitalising them as it increases your loan balance and gearing level.
  • Don’t rely on investment income to cover your interest costs
  • Ensure you have sufficient cash flow - Work out your interest payments and other costs in advance. Remember that interest rates may rise or you may be required to meet a margin call within short timeframes.
  • Monitor your investments:
    Regularly monitor the market and your margin loan, and be prepared to adjust your strategy when the market outlook is less positive. Your account information is available anytime online. If your account is in buffer, use the time to be proactive and avoid a margin call

How can I update my clients' personal details?

Simply complete the Investment Loan Change of Personal Details Form and return to us by:

Email (preferred): investmentlending@cba.com.au

Post:
CommSec Adviser Services
Locked Bag 34
Australia Square NSW 1214

We will process the request within approximately 48 to 72 hours of receipt.


How long does it take to process redemptions, reinvestments, and investment switches for clients?

We process your client’s redemption within 5 business days of receipt. Please allow at least 10 business days for Fund Manager to complete instructions, once authorised by our office.

Processing time varies depending on each Fund Manager's service level of agreement.


How do my clients repay or close their Investment Loans?

Simply get your clients complete the Investment Loan Closure and Repayment Form and return to us via:

Email (preferred): investmentlending@cba.com.au

Post:
CommSec Adviser Services
Locked Bag 34
Australia Square NSW 1214

We will process the request within approximately 48 to 72 hours of receipt.


This information was prepared by CommSec Adviser Services, a brand of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945, administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 80 067 254 399 AFSL 238614, a Participant of the ASX Group and Chi-X Australia. Only investors who fully understand the risks associated with gearing into investments should apply. Applications are subject to credit approval. Fees and charges apply. Please consider the Product Disclosure Statement (PDS) and Terms and Conditions, issued by the Bank before making any decision about the product.