Margin lending is simply borrowing to invest in shares and other financial products using existing share or managed fund investments as security. This is the fundamental difference to a normal investment loan secured by real property. Lenders specify which shares they are prepared to use for margin lending and the percentage of the share value that can be used as security. The service is best suited to clients who do not own real property, or would prefer not to use their principle residence as security for a loan.

Equity Lending loans are flexible with regards to Interest Only or Principle and Interest Structures available, but like all loans for investment purposes, the benefits of borrowing to magnify capital gains can work against you if markets are falling which can magnify losses. You can minimise the risk of margin calls by borrowing conservatively – that is, by borrowing less than the maximum LVR allowed by the margin lender. While there is no guarantee that even conservative borrowers won't experience a margin call, in general your exposure to risk is reduced.