Why SMSFS may choose NAB super lever

Expand your SMSF portfolio with financial assets

Over 350+ listed securities to borrow against

One credit limit. Multiple transactions. No extra cost.

An investment solution for SMSFs

Borrowing through super to invest has been made possible with NAB Super Lever – one of the only lending solutions in the market that allows SMSFs to borrow money to invest in shares, exchange traded funds (ETFs) and managed funds.

Amplify your investment power

NAB Super Lever helps amplify your investment power by providing the opportunity to expand the pool of financial assets in your portfolio.

SMSFs can borrow to invest by using a Limited Recourse Borrowing Arrangement (LRBA). To establish an LRBA, your SMSF will need to take out a loan with a lender and invest the borrowed money in the investments you want to acquire. The lender / security trustee manages all the loan administration, sets up individual LRBAs for each transaction and will purchase the assets on the SMSFs behalf.

There are risks associated with borrowing to invest. Some of these include, but are not limited to, rising interest rates, changes in taxation law and movements in the prices of your investments which may have an effect on your financial position. NAB Equity Lending recommends you speak to your financial adviser before deciding to invest.

Interest rates

Variable interest rates p.a

Fees

Variable interest rates p.a

 Less than $250,000
6.30%

Fees

Once off $250 establishment fee

Variable interest rates p.a

 $250,000 - less than $1.0m
6.05%

Fees

Once off $250 establishment fee

Variable interest rates p.a

 $1.0m and above
5.80%

Fees

Once off $250 establishment fee

Variable rates effective from 1 November 2019. Fixed interest rates are also available – find out more about fixed and variable rates for NAB Super Lever.

Benefits

Investing in shares and managed funds

NAB Super Lever is one of the only solutions in the market that allows SMSF investors to borrow money to invest in shares and managed funds.

Conservative approach to investment lending for SMSFs

Your SMSF is your nest egg and could help you enjoy retirement the way you want to. There can be risks when investing in the share market, so that’s why a maximum credit limit is imposed, based on the assets in your SMSF. There is also a limit on the SMSF equity that can be contributed.

Limited recourse

Recourse against the SMSF is limited to the acquired financial assets held as loan security. Please note full recourse personal guarantees are required from fund members.

Choice and flexibility

Setting up and maintaining a Self Managed Super Fund can be time consuming, complex and technical. To make things easier, NAB Super Lever has the required Security Trust structure already integrated so that means trustees of the fund can choose:

  • To select from a broad range of approved shares and managed funds
  • The preferred gearing level
  • To capitalise the loan interest
  • Whether to make use of a guarantor security
  • When to repay the loan
  • Acquire one or more investments and NAB will setup individual LRBAs for each asset purchased

Unconditional access to investment dividends

Cash dividends and distributions from the financed investment flow directly to the SMSF so you can access these funds anytime to spend or invest.

Risks to consider

Increased gains and losses

There can be risks when investing in the share market and borrowing to invest. Some of these may include rising interest rates, changes in taxation law, volatility and movements in the price of your investments which may have an effect on your overall position. While leverage may amplify gains it can equally amplify losses in a falling market.

Margin calls

NAB Super Lever is a margin loan, which means there’s a chance of margin calls. If your portfolio’s value decreases so that the amount of equity falls below a certain value you’ll be in a ‘margin call’ position. To rectify a margin call, extra security or cash funds may need to be deposited. If an SMSF investor fails to do this, the financial assets (the loan security) may be sold to correct the position.

Personal guarantee required from fund members

For example, if the acquired assets need to be sold to correct a margin call and the sale proceeds from selling doesn’t completely repay the loan, the individual fund members will need to repay the residual loan balance from sources other than the SMSF.

Reduced LVRs

Lending ratios are regularly reviewed and may decrease even for securities an SMSF already owns. If that happens, it can sometimes trigger a margin call.

Increased rates

Variable rates may change at any time. If this happens, you may need to review your investments and gearing strategy.

How to apply

Educate

Read everything and ensure you completely understand the benefits and risks, facility terms and product disclosure statement.

Find out more

Apply

Complete and submit the application form and guarantor form.

Apply

Approval

The application and trust deed is reviewed and if approved, a NAB Super Lever facility will be setup.

Instructions

Simply complete the Loan Request form and provide instructions to acquire new investments.

Forms

More information

Approved investments

View a broad range of listed securities and managed funds SMSFs can borrow against. View the Approved Investment List for NAB Super Lever.

Approved Investment List

Application forms and documents

Access forms and brochures you'll need to read and understand before applying.

Forms and resources

Interet rates

View interest rates for NAB Super Lever

Interest rates

Margin lending

Find out more about the benfits and risks of margin lending.

Find out more

Important information

The information provided in this website is intended to be of a general nature only. Any advice in this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice in this website, 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 in this website. The taxation information contained in this website 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 Super Lever facility.

There are risks associated with borrowing to invest. Some of these include, but are not limited to, rising interest rates, changes in taxation law and movements in the prices of your investments which may have an effect on your financial position. NAB Equity Lending recommends you speak to your financial adviser before deciding to invest.

It’s important to be aware that while a margin loan can increase gains, it can also magnify losses. As NAB Super Lever is a limited recourse margin loan, the SMSF’s loss is limited to the investments purchased with funds advanced under the NAB Super Lever facility. If the acquired asset needs to be sold to correct a margin call, and the sale proceeds from selling the asset doesn’t completely repay the loan, the individual fund members will need to repay the residual loan balance from sources other than their SMSF.

SMSFs should also be aware of their obligation as trustee of a superannuation fund to formulate and implement an appropriate investment strategy that considers the whole circumstance of the fund and to act in the best interests of the members of the fund. This includes ensuring they’re familiar with the risks involved and have in place adequate risk management procedures to manage the risks associated with borrowing to fund an investment. Relevant to this consideration will be the risks of a leveraged investment and factors such as the diversification of the assets of the superannuation fund and the overall level of gearing of the fund.

It’s recommended that investors take the time to do their research, read the Product Disclosure Statement (PDS) and talk with their financial adviser before deciding to invest.

All variable debit interest rates are effective from 1 October 2018. All fixed interest rates are effective from 21 May 2018. All credit interest rates are effective from 1 October 2018. All rates are subject to change at any time. Fees and charges may apply. Full details of these and the relevant terms and conditions are available on application. For further information and current interest rates go to nabmarginlending.com.au or contact NAB Equity Lending on 1300 135 145.

This website is not a substitute for reading the NAB Super Lever Product Disclosure Statement and Facility Terms. A PDS is available for the NAB Super Lever Facility. NAB is the issuer of the Facility and recommends you consider the PDS before making any decisions. The PDS document is available via our website at or by calling NAB Equity Lending on 1300 135 145.

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