Loan Against Shares? Unlock Funds Fast (2026)

Are you looking to leverage your investment portfolio to secure a loan? Many Australians are exploring the option of using their shares as collateral to access funds without selling their assets. If you're pondering the possibility of securing a loan against your shares, this comprehensive guide will walk you through the essentials, benefits, and considerations to make an informed decision.

Understanding Loans Against Shares

A loan against shares, also known as a margin loan or portfolio loan, allows you to borrow money by using your shares as collateral. This type of loan can be an attractive option for investors who need liquidity but do not want to sell their shares, potentially avoiding capital gains tax and maintaining their investment strategy. In Australia, these loans are generally offered by banks, financial institutions, and some brokerage firms.

Current Market Information and Loan Options

As of 2026, the Australian financial market has seen a steady interest in loans against shares due to favourable interest rates and a growing number of lenders offering competitive terms. The interest rates for loans against shares typically range from 6.49% to 12%, depending on the lender, loan amount, and the value of the shares used as collateral.

Eligibility criteria often include:

• A minimum value of shares, usually starting at $10,000.
• Shares must be listed on approved exchanges, such as the ASX.
• The borrower must meet specific creditworthiness standards set by the lender.

Here’s a comparison of different lenders and their offerings:

Esteb and Co, with access to over 83 lenders, can help you navigate these options to find the best fit for your financial needs.

Steps to Secure a Loan Against Shares

Securing a loan against your shares involves several key steps:

1. Evaluate Your Portfolio: Start by assessing the value and type of shares you hold. Confirm they are eligible and listed on approved exchanges.
2. Research Lenders: Compare interest rates, fees, and loan terms from different lenders. Use resources like Esteb and Co to explore a wide range of options.
3. Determine Loan Amount: Decide how much you need to borrow. Remember that lenders typically allow you to borrow a percentage of the market value of your shares, often ranging from 50% to 70%.
4. Apply for the Loan: Prepare necessary documentation, including proof of share ownership and financial statements. Submit your application to your chosen lender.
5. Negotiate Terms: Once approved, discuss the terms with your lender, ensuring you understand the repayment schedule, interest rate, and any fees involved.
6. Manage Your Loan: After receiving the funds, manage your loan diligently. Monitor the market value of your shares to avoid margin calls, where the lender requires additional collateral or repayment.

Expert Tips and Considerations

When considering a loan against shares, keep the following tips in mind:

• Market Volatility: The value of your shares can fluctuate. Be prepared for potential margin calls if the value drops significantly.
• Diversify Your Portfolio: Avoid pledging all your shares. Maintain a diversified investment to minimise risk.
• Understand Tax Implications: Consult a tax advisor to understand the potential tax benefits or liabilities involved.
• Read the Fine Print: Pay attention to loan terms, including exit fees and penalties for early repayment.
• Seek Professional Advice: Consider consulting with a financial advisor or mortgage broker, such as those at Esteb and Co, to guide you through the process.

Frequently Asked Questions

1. What is the maximum amount I can borrow against my shares?

The maximum loan amount typically ranges from 50% to 70% of the market value of your eligible shares, depending on the lender's policies.

2. Are there risks involved with loans against shares?

Yes, the main risk is market volatility. If the value of your shares falls, you might face a margin call, requiring you to provide additional collateral or repay part of the loan.

3. Can I use any type of shares as collateral?

No, only shares listed on approved exchanges, such as the ASX, are generally accepted as collateral by lenders.

4. How does a margin call work?

If the value of your shares drops below a certain level, the lender may issue a margin call, requiring you to deposit more funds or securities to maintain the loan.

5. What are the tax benefits of a loan against shares?

By not selling your shares, you may defer capital gains tax. However, it’s essential to consult with a tax advisor to understand all implications.

6. Can I repay the loan early?

Yes, but be aware of any early repayment fees or penalties that may apply, as outlined in your loan agreement.

7. How can Esteb and Co assist me?

Esteb and Co can provide expert guidance and access to a wide range of lenders, helping you find the best loan terms tailored to your financial situation.