Pricing
How a facility is priced.
Interest at the official cash rate plus a margin, charged only on what you draw. One annual facility fee, charged in advance. No establishment fee. No custody charge.
Ask for a quoteAvailable to wholesale clients only, as defined in the Corporations Act 2001 (Cth). Not available to retail clients.
How pricing works
One rate. One fee.
Interest
- The official cash rate plus a margin
- Calculated daily on the drawn balance only, not the facility limit, and charged monthly
- The margin is confirmed at approval and set out in the facility documents
Annual facility fee
- A small percentage of the facility limit, confirmed with your margin at approval
- Charged annually in advance from the day the facility goes live; not refundable if the facility is closed or reduced during the year
- No establishment fee. Non-standard structures are priced in the facility documents
Facility size
- No minimum or maximum facility size
- Larger facilities are structured individually
- The limit is set by the lending value of the pledged portfolio
Custody and trading
- No charge for holding pledged securities in the ordinary course; where a custodian charge applies, it is set out in the facility documents
- Volans does not trade for you. If securities are sold to restore a margin shortfall, the costs of that sale are borne by the borrower
Official cash rate means the RBA cash rate target for AUD facilities and the equivalent overnight benchmark for other currencies. Loan-to-value and margin vary with the portfolio; market movements can lead to a margin call and sale of securities.
Other currencies
Priced in the currency you draw.
The reference rate follows the currency of the drawdown, not where you live. Margins for each currency are confirmed at approval.
| Currency | Reference rate |
|---|---|
| AUD | RBA cash rate targetReserve Bank of Australia |
| USD | SOFRSecured Overnight Financing Rate, Federal Reserve Bank of New York |
| GBP | SONIASterling Overnight Index Average, Bank of England |
| EUR | €STREuro short-term rate, European Central Bank |
| NZD | Official Cash RateReserve Bank of New Zealand |
| SGD | SORASingapore Overnight Rate Average, Monetary Authority of Singapore |
| CHF | SARONSwiss Average Rate Overnight, SIX Swiss Exchange |
| JPY | TONATokyo Overnight Average Rate, Bank of Japan |
Before you compare
What the price does and does not include.
Confirmed at approval — the rate and fee for a facility are set out in its documents before anything is drawn. Where a facility is arranged through a wealth platform or adviser, terms are agreed with that partner and may differ.
Rate movements — the reference rate moves with the market or the central bank, and the interest on a facility moves with it.
Security — pledged investments may be sold following a margin shortfall or default. The costs of that sale are borne by the borrower.
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