Create wealth

Case study

Recently, Asha and Justin had their property valued at $600,000. With $100,000 owing on the home, they sought professional advice from their accountant and decided that they’re prepared to use $360,000 in available equity.

Asha and Justin arranged to speak to our home loan consultant. They explained their aims and their investment plan. The home loan consultant informed them of the Portfolio Package as a solution, based on their investment plan.

Secured by their residential property, the Portfolio Package facility allows Asha and Justin to structure their personal and investment borrowings the way they want. This allows multiple sub-accounts, with the flexibility to move or change their loans  across the sub-accounts (a new application will be required).

With an overall portfolio limit of $360,000, Asha and Justin received investment advice from a financial planner and decided to split their equity across various investment options. For example, $280,000 towards an investment property, $30,000 towards direct shares, AUD$40,000 towards managed funds and the remaining $10,000 towards a renovation.

case study

Sub-accounts are a way for Asha and Justin to structure and manage their investments and expenditure. With each of their sub-accounts, Asha and Justin will also be provided with an Investor account in which they can deposit their rental income from their investment property or access funds (such as to pay expenses) whenever they want. Asha and Justin can also save on interest with an offset account.

Our Portfolio Package also provides Asha and Justin the option of a Visa Gold credit card with a pre-approved limit. This offers convenience in case of an emergency, such as the need to pay for emergency repair work on their investment property, or to simply pay the registration on their new car. Or, they can use their Visa Gold credit card for everyday purchases.

Portfolio planner

If you need assistance in structuring your personal and investment loans, you may find our Portfolio Planner (PDF) useful.

Any advice has been prepared without taking account of your objectives, financial situation or needs. BankVic cannot provide tax advice. Before acting on the advice you should consider whether the advice is appropriate for you. Investment and taxation advice should be sought from an experienced adviser. Our financial planners may be able to assist with investment advice. Before you make any decision to acquire any product or service you should obtain and consider the relevant Product Disclosure Statement available on our website, at a branch or by calling 13 63 73. As an AFSL holder, BankVic sells general insurance products under an agreement with CGU Insurance Limited ABN 27 004 478 371 AFSL 238291. Terms, conditions, limits and exclusions apply. If you purchase insurance we will receive a commission that is a percentage of the premium. Fees and charges apply. Interest rates are variable and subject to change. Information on our terms & conditions, interest rates and fees & charges are available on request.

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