Frequently asked questions

About margin lending
How to operate your margin lending facility
How to manage a margin callHow to use your NAB Margin Lending Facility with NAB OnLine Trading

About margin lending

What is margin lending?
How do I establish a margin lending facility?
What is third party security?What are covered call options?

What is margin lending?
Margin lending is a flexible way to borrow money to invest enabling investors to borrow against their existing assets (eg. cash, share holdings etc) to invest in more shares and managed funds. Find out more about NAB Margin Lending.

How do I establish a margin lending facility?
To apply for a NAB Margin Lending Facility, you need to read through the Application Kit and complete the Application Form. All loan applications are subject to approval. 

NAB Margin Lending will generally approve individual or joint applications within 48 hours of receipt of the application. Applications from companies and trustees on behalf of trusts may take longer to approve.

On approval of your application you will receive a welcome kit with a letter confirming the approval of your Facility, and details about how to operate your Facility. More information about how to apply for a NAB Margin Lending Facility.

What is third party security?
Another person or company (except where acting as a trustee) may provide security for your NAB Margin Lending Facility. This is known as third party security and provides you with the opportunity to use another person's or company's investments as security for your Facility.

The owner of the shares or managed funds needs to act as guarantor to your NAB Margin Lending Facility. A guarantor can be:

• A director of a company providing a director's guarantee for a National Margin Lending Facility established in the company's name; or
• A third party who provides security such as cash and/or shares and/or managed funds.

What are covered call options?
NAB Margin Lending provides you with the opportunity to write call options by using the shares held as security for your Facility as specific cover for those options. When you sell (or write) a call option, you give the buyer of the option the right to buy your shares at a specified price on or before a specified date. When you lodge the shares underlying your call option with the Australian Clearing House (ACH) as cover for your daily margin obligations in respect of that option, your call option is known as a specific covered call option. For further information regarding covered call options, contact your NAB Margin Lending Account Manager on 1300 135 145.

How to operate your margin lending facility

How do I provide third party security?How do I operate or request changes to my Facility details?How do I get online access to my Facility?How do I transfer shares and/or managed funds to my NAB Margin Lending Facility?How do I settle share trades through my Facility?How can I acquire a managed fund investment?How do I redeem a managed fund investment?How do I provide additional security for my loan?How can I increase my Facility limit?How do I establish instalment gearing?How do I pay interest on my margin loan from my nominated bank account?How do I request an advance from my NAB Margin Lending Facility?How can I change my interest rate option?How do I refinance an existing margin loan from another margin lender?How do I authorise another person to operate my Facility on my behalf?How do I nominate a financial adviser or broker?How do I advise NAB Margin Lending of a change of name/address for my Facility?I have more than one NAB Margin Lending Facility. Will I need a separate User Name and Password to gain access to each Facility?I am a guarantor only in respect of a NAB Margin Lending Facility. How do I access information about the Facility?We have an authorised representative on our Facility. Can that authorised representative have access to our Facility? 

How do I provide third party security?
If you would like to arrange for a guarantor to provide third party security for your Facility, please contact a NAB Margin Lending Client Service Representative on 1300 135 145.

How do I operate or request changes to my Facility details?
To operate or request changes to you Facility details, you will generally need to provide us with written instructions.

To assist you in providing us with instructions so that we can action promptly on your behalf, please download the appropriate forms from our website.

How do I get online access to my Facility?
NAB Margin Lending will issue you with a User Name and Password shortly after your application has been approved. If you haven't received your User Name and Password within 10 working days from the date you receive written confirmation that your Facility has been established, or have forgotten these details, please contact a NAB Margin Lending Client Service Representative on 1300 135 145.

How do I transfer shares and/or managed funds to my NAB Margin Lending Facility?
To transfer shares and/or managed funds to your NAB Margin Lending Facility, you need to complete the Security/managed fund transfer instruction form (232kb). 

How do I settle share trades through my Facility?
If you haven't provided security to NAB Margin Lending to commence trading, you need to complete the Security/managed fund transfer instruction form(232kb). You must also provide NAB Margin Lending with the authority to settle with any broker you will be trading through, including discount and online brokers by completing a Financial adviser/broker authority (227kb).

How can I acquire a managed fund investment?
You can apply to acquire an approved managed fund investment using funds from your margin loan. To arrange for NAB Margin Lending to draw funds from your Facility and submit the application for units in an approved managed fund on your behalf, please complete the Managed fund application/lodgement instruction (226kb).

How do I redeem a managed fund investment?
To redeem a managed fund investment you need to complete the Managed fund redemption instruction (226kb).

How do I provide additional security for my loan?
Any existing shares or managed funds that you (or a third party) hold can be lodged as security for your Facility any time by completing the Security/managed fund transfer instruction form (232kb). You also need to provide us with copies of the most recent shareholder statements and/or unitholder statements for the shares and managed funds you are lodging as security. 

How can I increase my Facility limit?
To request an increase to your Facility limit, please complete the Request to increase Facility limit (225kb). You can download this form from our website. If there are any guarantors to your Facility, you will need to obtain consent for any increase from all guarantors before NAB Margin Lending will approve the increase. You should provide any guarantors with the form titled Request to increase Facility limit - Guarantor consent (225kb) and ask that they complete this and return the form directly to NAB Margin Lending. 

How do I establish instalment gearing?
Your NAB Margin Lending Facility can be established with instalment gearing. This provides you with the ability to invest in approved managed funds (which appear on the Approved Investment List) on a regular basis. To establish an instalment gearing arrangement complete the Request to establish instalment gearing (229kb).

How do I pay interest on my margin loan from my nominated bank account?
If you would like your interest payments to be debited from a nominated bank account, please complete the Request for direct debit (225kb). You can download this form from our website. It is important that you read the Direct Debit Service Agreement contained in the NAB Margin Lending Facility Terms before you complete this request.

How do I request an advance from my NAB Margin Lending Facility?
Funds advanced under your Facility must be used wholly or predominantly for business or investment purposes. A request for an advance must also:

• be for a minimum of $2,000;
• not place your Facility in a buffer or margin call position; and
• not cause the total loan(s) outstanding to exceed the Facility limit.

To request an advance from your Facility, complete the Request for advance (226kb). Upon receipt of your request, NAB Margin Lending will assess whether the advance can be made and, if so, make the funds available to you by:

• mailing a cheque to your nominated postal address; or
• directly crediting the funds to a bank account nominated by you

How can I change my interest rate option?
You may request to change the interest rate option applying to your margin loan or a portion of your loan. To do this, complete the Request to change interest rate option(225kb).

How do I refinance an existing margin loan from another margin lender?
To refinance an existing margin loan with NAB Margin Lending, please provide us with details of the securities and/or managed funds you wish to transfer to your NAB Margin Lending Facility by completing the Refinance instruction (227kb).

How do I authorise another person to operate my Facility on my behalf?
If you are going away or may not be contactable for some time, we recommend you consider appointing an authorised representative to operate your Facility on your behalf. Your authorised representative is able to make decisions and give instructions on your behalf, including responding to a margin call. To appoint an authorised representative, complete the form titled Client representative(s) authority (226kb).

How do I nominate a financial adviser or broker?
You can trade with any broker of your choice, however, your broker must be given authority to buy and sell shares utilising your Facility. If you wish to nominate a financial adviser or broker to act on your behalf, please complete the Financial adviser/broker authority (227kb).

How do I advise NAB Margin Lending of a change of name/address for my Facility?
To notify us of a change of name and/or address please complete the Change of Name/Address Advice (224kb). If you change your name due to marriage, a certified copy of the marriage certificate must also be provided. If you change your name for any other reason, please include any relevant supporting legal documentation.

I have more than one NAB Margin Lending Facility. Will I need a separate User Name and Password to gain access to each Facility?
You will be issued with just one User Name and Password and these will give you access to all your NAB Margin Lending Facilities (except those for which you are a guarantor only).

I am a guarantor only in respect of a NAB Margin Lending Facility. How do I access information about the Facility?
NAB Margin Lending will provide you with a Facility statement that provides information about the Facility.

We have an authorised representative on our Facility. Can that authorised representative have access to our Facility?
Authorised representatives can have access to your Facility, and they will be issued with their own User Name and Password, on your request. You should not provide an authorised representative with your User Name or Password. Where a Facility is in the name of a company, a trustee of behalf a trust or a partnership, the authorised representative/s for these entities will all be provided with their own individual User Name and Password.

How to manage a margin call

How do I minimise the risk of a margin call?
It is important that you closely monitor your Facility on a regular basis and promptly take action if you are in a margin call position. While we will attempt to contact you if you are in a margin call position, if we are unable to do so we may sell shares or redeem managed fund units to restore your Facility position without further reference to you.

If you intend to go away or will not be contactable for some time, we recommend you consider the following:

• deposit additional funds (either to the credit of your variable interest rate loan account or to your Cash Management Account);
• provide additional approved investments as security;
• nominate an authorised representative to act on your behalf (including responding to margin calls).

Other ways to minimise the risk of a margin call are:

• for variable interest rate loans, pay the interest monthly instead of having the interest added (capitalised) to your loan balance;
• arrange for dividends and distributions to be credited directly to your variable rate loan or Cash Management Account;
• do not borrow up to the maximum allowed. For example only borrowing up to 60% against an investment with a security value of 70% provides you with additional protection;
• diversify your portfolio across a number of investments and industry sectors to lessen the impact of poorly performing investments.

Further information about managing investment risks.

How to use your NAB Margin Lending Facility with NAB OnLine Trading

How do I link my NAB Margin Lending Facility to my NAB OnLine Trading account?Will my NAB Margin Lending User Name and Password gain me access to my NAB OnLine Trading account?How do I obtain more information about NAB OnLine Trading?

How do I link my NAB Margin Lending Facility to my NAB OnLine Trading account?
If you are an existing NAB OnLine Trading client and wish to link your existing trading account or establish a new trading account linked to a NAB Margin Lending Facility, you need to complete a Linking NAB OnLine Trading Accounts to a NAB Margin Lending Facility form. Please note, if you opt to convert your existing NAB OnLine Trading account to a NAB Margin Lending account then your HIN and all your holdings on your existing NAB Online Trading account will be transferred to your NAB Margin Lending facility.

Will my NAB Margin Lending User Name and Password gain me access to my NAB OnLine Trading account?
You require a separate User Name and Password to gain access to your NAB OnLine Trading account details.

How do I obtain more information about NAB OnLine Trading?
Further information regarding NAB OnLine Trading is available by contacting a Customer Service Representative on 13 13 80 or visiting nab.com.au/trading

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