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.
Bookmarks