Quote Originally Posted by Vaygor1 View Post
If you borrow money and buy shares with it then the interest off the borrowings is deductible off the dividend income you received from those shares bought.

It follows that you could not have bought them without the loan so the interest is a direct expense incurred as a result of owning the shares that provide the income stream.

ASB Sec's interest rate is a fixed level above the OCR (Official Cash Rate) as far as I'm aware.
Other rates/Fees are here:
https://www.asbsecurities.co.nz/section253.asp

A list of shares you can margin lend against (and their ratios) for ASB is here:
https://www.asbsecurities.co.nz/section55.asp

A list of shares you can margin lend against (and their ratios) for Forsyth Barr (through their vehicle 'Leveraged Equities Finance Limited') is here:
http://www.leveragedequities.co.nz/M...ing-Ratio.aspx

I hope this helps.
Ihave borrowed to buy shares -unfortunately a lot was for nzog just before the crash-using asb margin lending-they advised me to diversify more-which i did but not fast enough-so either had to sell at a big loss or mortgage my house-so mortgaged the house.Am now regaining ground as asb rate for me is 6% and average gross retuns via dividends are over 10%
.If i was starting again i would use asb-act promply on their advice and only buy shares which have low risk and high dividends-chorus is an obvious one that is low risk-also cen and tel