Hello; I've been investing for a few years but I've never explored margin loans.
I'm wondering if it's possible/sensible to use a margin loan facility just for emergencies?
eg say I need dental or surgery work done that exceeds my emergency funds and rather than sell my shares
could I borrow against them?
I understand how the loan to value ratio works etc and the required security; but what I'm not sure on is
a.) Can drawdown on a margin loan for non investment purposes? eg dental work
b.) Can I have a margin facility available but unused so I don't pay any interest until I draw down?
I notice on the suncorp margin loan site it says on the faq you can pay off the full balance and leave the facility open until you need it...but on the other hand it says you have to have a minimum of 20,000 borrowed. Do they mean you always have to be paying interest on 20,000 or they'll get sad or that you have to have security for a minimum of 20,000?
Is there a better way to access capital in my portfolio for emergencies? Or should I just sell to raise capital (Thus risking market timing issues/unbalancing my portfolio, etc)
Here's my current portfolio if it helps answer questions