Margin Loan Commission Rebates

Margin Loan Refunds

A margin loan allows you to borrow money to make an investment. This investment could be buying shares or an investment property, but the best thing about a margin loan is that it can be paid in pre-tax dollars. Unlike the interest you are charged on your home loan or your credit card, the interest on a margin loan is tax deductible, making a margin loan a good investment, and good for your tax position. Unfortunately the banks and financial planners also want to benefit – and continue to benefit, for the life of your investment – from your savvy financial choices and they are receiving trailing commissions, generated by your margin loan.

What Are Margin Loan Trailing Commissions?

Trailing commissions are paid to financial planners and brokers, for the life of each product they sell. These commissions are generated on a percentage of each product, usually around 0.60% of the balance of your margin loan, and are paid to cover the financial planner for their ongoing advice and assistance with your investment.

However, very few financial planners will continue to offer advice after their margin loan deal has closed. Regardless of how often you hear from your bank or broker, the trailing commissions continue to be generated on your margin loan automatically. So instead of having commissions from your margin loan being paid to an advisor or financial institution you don’t hear from anymore, request a refund by registering now with Commission Rebates.

How Can You Make Your Good Debt Even Better?

Commission Rebates can act as your broker and collect the trailing commissions from your margin loan for you. Since there is no way to stop the commissions being generated, wouldn’t you rather they were refunded back to you, than having them paid go your advisor? By registering with Commission Rebates we can open a refund account for you and pay your commissions directly into that account, or into a nominated bank account of your choice.

You are already making great financial decisions by managing your margin loans as good debt; since the money you have borrowed in your margin loan is going towards an appreciating asset, or one you expect to increase in value, your money really is working for you. Not only are the interest charges on a margin loan tax deductible from your overall income, you are focussing your finances on making every dollar work for you, so why wouldn’t you also want to make sure that every dollar you are entitled to is being paid to you too?

Even though the trailing commissions are generated on margin loans, and other investments such as managed funds and superannuation funds, to cover the advisory costs of a financial planner, even when there is no financial planner and you dealt directly with the bank, the commissions are still generated – they are simply retained by the provider.

Plus, it doesn’t matter if you are considering applying for a margin loan, or if you have an existing loan, because once you register with Commission Rebates, you can still have the commissions from your loan refunded. Registering with Commission Rebates does not change the status or account details of your investment loan, nor does it open you up to any capital gains tax issues. You remain in complete control of your margin loan and can pay out or refinance the loan at any time you choose.

Therefore, to make your good debt even better, request a refund by registering now with Commission Rebates and have the trailing commissions generated on your margin loan repaid.

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