Frequently Asked Questions

SEARCH FAQ:

  • CALIA+ Application

    1. If a borrower already has an existing Commonwealth Bank account can they convert this account to a CALIA+ sub-account and retain the BSB and account number?

      Yes. Borrowers can convert an existing CBA account and retain the BSB and account number. Simply provide the account details in Section 4 of the loan application form. Existing salary crediting and direct debit arrangement will also continue.

    2. If a CALIA+ facility is established in joint names can some sub-accounts be created in one name only?

      Yes. Sub-accounts may be established in any combination of the joint borrower’s names. Where single named sub-accounts are established the other borrower will be required to provide a guarantee over this account.

    3. Can CALIA+ Fixed Loans be progressively drawn down?

      No. Fixed Loans are non-transactional accounts and must be fully drawn down at time of funding/settlement.

    4. How do I find out whether a CALIA+ application has been approved?

      We will inform the financial adviser of our credit decision by telephone or email and through our online service.

    5. When will the CALIA+ offer documents be posted to the borrower?

      The offer documents will be sent to the financial adviser after all necessary supporting documents have been received and verified by us and the facility has been approved. We will inform the financial adviser if any supporting documents are outstanding. Offer documents are generally despatched within 2-3 working days of approval.

    6. What are the application fees and charges?

      All fees and charges are detailed in the CALIA+ Fees and Charges Schedule and the CALIA+ offer document.

    7. If the CALIA+ application involves the refinancing of a loan from another financial institution, does the borrower need to notify them?

      Yes. Please check with the current lender to establish what they require to discharge an existing mortgage. Most financial institutions simply require their specific discharge authority form to be completed and signed by each borrower.

    8. How long will it take to settle a CALIA+ facility if it involves a refinance from another financial institution?

      Approximately 10-15 working days after all completed documents have been returned. Often the other financial institution(s) will require this lead-time to book and confirm a settlement date. Please note that this timeframe is dependent upon the other financial institution(s).

    9. Do all CALIA + Applications require a Property Valuation?

      You will be advised upon Credit Approval if a Property Valuation is required.

  • Colonial Margin Loan

    1. What is a margin loan?

      A margin loan allows investors to borrow money to make investments into ASX listed securities and/or managed funds. By adding borrowed money to your own funds you can increase the total amount of funds working for you. This means that a margin loan can help you build a larger investment portfolio which provides you with the opportunity to potentially increase your investment income and your wealth over time.

    2. Why use a margin loan?

      • Potential to magnify gains in a rising market
      • Flexible
      • No application fee for individuals, no set loan term and you can draw down/repay the loan as often as you like
      • Free up capital
      • Potentially defer capital gains
      • Allows for greater diversification
      • May reduce your tax bill by allowing you to claim the interest expense as a tax deduction.

    3. What are the risks?

      While gearing multiplies your opportunity for gains in a rising market, it can also multiply your losses should the market fall.

      In addition your investments may not perform as expected, interest rates may rise, taxation regulations may change or your financial circumstances may change. We strongly suggest that you obtain independent advice, including taxation advice, before you make a decision in respect to margin lending.

      A Margin Loan exposes you to unfavourable movements in the value of shares and units in managed funds, and possibly to margin calls. Borrowers are personally liable for any shortfall that occurs should their entire portfolio have to be sold to meet a margin call. Only investors who fully understand the risks associated with gearing into investments should apply.

    4. What are the different gearing options within a Colonial Margin Loan?

      The Colonial Margin Loan offers two gearing options

      • Lump Sum Gearing is for investors who wish to invest into listed securities and/or managed funds on a non-regular basis by borrowing a lump sum amount up front.
      • Regular Gearing is for investors who wish to invest into managed funds on a regular basis.

    5. Does each gearing option have any investment restrictions?

      • Lump Sum Gearing
        Investments can be made into managed funds, listed securities or a combination of both.
      • Regular Gearing
        While the initial loan advance can be invested in either managed funds or a combination of managed funds and listed securities, all regular loan advances and equity contributions can only be invested into managed funds.

    6. What securities do you lend against?

      Colonial Geared Investments has a comprehensive accepted securities list with over 450 ASX listed securities, 2000 managed funds and 80 investment platforms. Each accepted security has a lending ratio which indicates the maximum we will lend against that security. Our lending ratios are generally between 40% and 75%.

    7. Can I use a margin loan to borrow and invest in securities which are not on your accepted securities list?

      Yes, provided you have sufficient funds available (equity in your existing secured portfolio) you will be able to fully fund the purchase using your margin loan. Purchases settled by your margin loan will be held as security however will be allocated a 0% lending ratio.    

    8. What are the interest rates?

      For all current interest rates please see our Colonial Margin Loan interest rates page or our CALIA+ interest rates page.

    9. Are there any fees applicable with a Colonial Margin Loan?

      There are no application fees for individual applicants. Please see our Colonial Margin Loan fees and charges page for information.

    10. Am I able to split my loan between a fixed interest rate and a variable interest rate?

      Yes, you can split your loan balance with a portion at a fixed interest rate and the remaining portion at the prevailing variable interest rate.

    11. Can I convert my margin loan from a fixed interest rate to a variable interest rate?

      Yes, however a fee may be payable if the fixed portion of your loan is terminated before the fixed term has expired. Details of the fee can be found in the Terms & Conditions.

    12. How do I transfer existing managed funds to Colonial Margin Lending?

      If you wish to add an existing managed fund investment to your Colonial Margin Loan you must complete a standard transfer form, statutory declaration and in some cases an application form for your managed fund with all the holding details completed.

    13. Can securities and managed funds held in the name of a third party be provided as security?

      Yes. Security from a guarantor or third party mortgagor can be accepted. Documentation to establish the guarantor or third party mortgagor will be required before acceptance of the security.

    14. What is a Margin Call?

      A margin call occurs when your security falls in value and your Current Loan-to-Security Ratio equals or exceeds your Margin Call Loan-to-Security Ratio.

    15. What is the Margin Call Buffer?

      Your Current Loan-to-Security Ratio may exceed the Base Loan-to-Security Ratio by up to 10% before triggering a Margin Call. This 10% allowance is referred to as the Buffer. The Buffer is designed to give you an allowance for fluctuations in the market value of your security portfolio. You are not permitted to use this Buffer to make investments.

    16. What are the options available to me when I am in margin call?

      • Reduce your loan balance by depositing cash
      • Reduce your loan balance by selling investments
      • Lodge additional managed funds, securities or cash as security that have an LVR applicable to them.

      Please note the amount required for each option will differ.

    17. What happens if I do not clear the Margin Call within the required timeframes?

      We may (but are not obliged to) sell sufficient security to clear any overdue Margin Call, so that the Current Loan-to-Security Ratio is restored to the Base Loan-to-Security Ratio.

      Important Information
      The Colonial Margin Loan is one of the products under the Colonial Geared Investments brand which are provided by the Commonwealth Bank of Australia ABN 48 123 123 124, administered by its wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814. This information has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regard to their objectives, financial situation and needs and, if necessary, seek professional advice. Applications are subject to credit approval. Fees and charges apply.

      This website notes some features of a Colonial Margin Loan. Please obtain and consider the product disclosure statement (PDS), available from the Commonwealth Bank of Australia (ABN 48 123 123 124 AFSL 234945) as the product issuer, at       www.colonialgearedinvestments.com.au before making any decision about the product.

      Please consider the full terms and conditions available on application on this website. Only investors who fully understand the risks associated with gearing into investments should apply.

  • CALIA + Post-Settlement

    1. How often are CALIA+ statements sent to the borrower?

      A consolidated account statement is sent every month.

    2. How can my clients transact on their CALIA+ facility?

      All clients can transact on their CALIA+ Variable sub-account via ATM, NetBank, EFTPOS, BPAY, Telephone Banking, cheque book or at any Commonwealth Bank branch. Transactions on CALIA+ Fixed Loans are limited to the initial draw down and the final repayment. Transactions on CALIA+ Margin Loans can be conducted by contacting our Client Service team on 1800 646 151.

    3. How can my clients make loan repayments on their CALIA+ Variable Line of Credit?

      A loan repayment from a Commonwealth Bank account can be transferred into a CALIA+ Variable Line of Credit via NetBank, Telephone Banking, or using a Commonwealth Bank ATM. Cash or cheque repayments can be deposited directly into the CALIA+ Variable Line of Credit at any Commonwealth Bank branch.

    4. Can the borrower nominate where the monthly interest charges for each CALIA+ sub-account is debited?

      Yes. Monthly interest charges can be debited from any variable rate line of credit within the CALIA+ facility. CALIA+ Margin Loan interest charges may be capitalised or debited to any CALIA+ variable rate line of credit.

    5. Is BPAY® available on CALIA+?

      Yes. Your clients can make payments using BPAY® using NetBank or Telephone Banking.

    6. How can my client obtain access to NetBank or Telephone Banking?

      NetBank access can be obtained by completing Section 4 of the CALIA+ application form. If access was not requested as part of CALIA+ application, clients can register for this service online by clicking here or by calling 13 22 21 (24 hours 7 days a week).

    7. Is a CALIA+ Margin Loan considered a sub-account and does it count towards the additional sub-account fee?

      Yes. A CALIA+ Margin Loan is considered a CALIA+ sub-account and is included in the determination of any additional sub-account fee. The first three sub-accounts do not attract this fee, however each additional sub-account will be charged a monthly $8 additional sub-account fee.

  • Making changes to the CALIA+ facility

    1. How do clients increase their CALIA+ Bundle Limit?

      A New Application Form is required with the necessary supporting documents. This is to ensure the client’s current financial position is reflected and an accurate Credit Decision can be undertaken. 

    2. How do clients change their sub-account limits?

      If the proposed change to the sub-account credit limits remain within the approved CALIA+ Bundle Limit, please email or write to us with the details of the required sub-account limit adjustments. A credit assessment is not required.

    3. How do clients set up or change a periodic payment on a CALIA+ Variable Loan?

      A periodic payment can be established or changed via NetBank. Alternatively, a client can establish or change a periodic payment by visiting a Commonwealth Bank branch or calling 13 22 21.

    4. How do clients activate their CBA Keycards (ATM cards)?

      Clients can activate a CBA Keycard by calling 13 22 21 (24 hours a day, 7 days a week).

    5. How does a client notify you of changes to their personal details?

      Clients should write to us at address: Locked Bag 34, Australia Square NSW 1214.

      Important Information

      CALIA+ is one of the products available under the Colonial Geared Investments brand, and is provided by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (‘Bank’). The Bank’s wholly owned but non-guaranteed subsidiary Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814, a Participant of the ASX Group, only administers the Margin Loan Sub-accounts within CALIA+. This information has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regard to their objectives, financial situation and needs and, if necessary, seek professional advice. Applications are subject to credit approval. Fees and charges apply.

      This website notes some features of a Colonial Margin Loan. Please obtain and consider the product disclosure statement (PDS), available from the Commonwealth Bank of Australia (ABN 48 123 123 124 AFSL 234945) as the product issuer, at www.colonialgearedinvestments.com.au before making any decision about the product.

      Please consider the full terms and conditions available on application. Only investors who fully understand the risks associated with gearing into investments should apply.

      Electronic Banking services (Electronic Banking services include Telephone Banking, NetBank, BPAY and EFTPOS) are issued by the Commonwealth Bank of Australia ABN 48 123 123 124 . General Information and Terms and Conditions are available for these products on www.commbank.com.au. General Information and Terms and Conditions should be considered before making any decision about these products.

  • Commonwealth Bank Credit Cards

    1. Can a client apply for a credit card with their CALIA+ facility?

      Yes. A Credit Card application form can be found at the Back of the Calia + Application booklet. Applications can also be made online by clicking here or at any Commonwealth Bank branch. Clients can also apply for this credit card over the telephone by calling 13 22 21 (24 hours a day, 7 days a week).

    2. Can a Commonwealth Bank credit card be linked to the CALIA+ facility?

      Any Commonwealth credit card (new and existing) can be linked to a client's CALIA+ sub-account. Your clients can do this by visiting a Commonwealth Bank branch or by calling 13 22 21 (24 hours a day, 7 days a week).

  • Adviser Trading Centre Dynamic Desktop

    1. What are the system requirements for the Adviser Trading Centre (ATC) Dynamic Desktop?

      ATC Dynamic Desktop has been built on the Microsoft.Net framework which must be installed on your computer before ATC Dynamic Desktop will run. To run ATC Dynamic Desktop, users need to download an installation package from the Adviser Trading Centre or Colonial Geared Investments website and install the application on their own PC.

      ATC Dynamic Desktop supports PCs running Windows 2000 and higher. For optimal performance, we recommend running ATC Dynamic Desktop on machines with a minimum of 256 Megabytes of RAM and on more recent operating systems.

      ATC Dynamic Desktop is not designed to run on any Macintosh operating systems.

    2. How do I download ATC Dynamic Desktop?

      First you need to determine if you have Microsoft.Net installed. If you don’t have .Net installed or you’re not sure:

      1. Click on the link below to download the Microsoft .NET installation package:
        Microsoft.Net Framework Version 1.1 Download page

        Please be aware that this is a 23.1 Megabyte download but you will only need to download and install the program once.
      2. Click on the Download button on the download page.
      3. Choose the 'Run' option.
      4. Choose Yes to install and then click on Ok to complete installation.
      5. Download the ATC Dynamic Desktop installation package by clicking on the following link: Download the installation package of ATC
        This file is 5.36 Megabytes and it should take less than 5 minutes to download on a broadband connection.
      6. When the download is complete, left click on Run. When running the installation, it is recommended that you to accept the default items and folders displayed. Left click on Next to proceed.
      7. Launch ATC Dynamic Desktop via the ‘ATC Dynamic Desktop’ shortcut icon on your desktop or from your Programs folder via the Start button.
      8. To log on you will need your existing Adviser Trading Centre client ID and your existing ID password.

       

    3. I am receiving the following security message when installing ATC Dynamic Desktop: "The publisher could not be verified. Are you sure you want to run this software"?

      Click on the "Run" button to continue with the installation.

    4. I am receiving the following error message after downloading and installing ATC Dynamic Desktop: "The application failed to initialize properly (0xc0000135). Click on Ok to terminate the application"?

      You need to download Microsoft.Net before logging into ATC Dynamic Desktop. Click here to download.

    5. I am still having connection issues after installing Microsoft.Net.

      What is the brand of firewall that you are using? You may need to add Adviser Trading Centre as an exemption to the firewall list. To do this please refer to your help file or visit the manufactures website

      FOR VISTA/WINDOWS 7 USERS: You will need to run the software ‘As administrator’. To do this you will need to right click on the Adviser Trading Centre.exe icon in the program files directory (eg. C:\program files\Adviser Trading Centre) and select "run this program as an administrator" PLEASE NOTE - This will not work if you try this on the desktop short cut.

    6. Is a special connection required for ATC Dynamic Desktop?

      ATC Dynamic Desktop connects to CommSec servers via the internet.

      ATC Dynamic Desktop may work on slower modem connections but the service is intended for those users who have a connection to the internet via a broadband connection such as Cable, DSL or LAN.

      Where a direct connection to the internet is not available or a proxy server sits in line between your computer and the servers, the ATC Dynamic Desktop service may not be available.

      You should contact your Network Administrator or ISP to confirm whether access will be available. We cannot guarantee that the application will function correctly in all networks.

    7. How secure is ATC Dynamic Desktop?

      All information related to your account, including your login is encrypted with Secure Sockets Layer (SSL) which is the same technology used on the current ATC website to guard your personal information transactions.

    8. Will there be software upgrades?

      From time to time, ATC Dynamic Desktop will be updated to provide improvements. If an updated version of the software is available, users will be required to download and install the latest version before using the ATC Dynamic Desktop service. This is to ensure that all clients are using the latest application and features.

    9. What technical support exists for ATC Dynamic Desktop?

      If you have any technical problems with the ATC Dynamic Desktop service, please email atc@cba.com.au specifying:

      • Your ATC login
      • A detailed description of the problem
      • How frequently the problem occurs
      • Whether the problem is reproducible
      • The last time you experienced the problem

      For further assistance, please contact us on 1300 650 675 (Monday to Friday from 8:30am - 5:00pm, Sydney Time)

  • Accelerator Cash Account

    1. Can I use an Accelerator Cash Account as the linked bank account for the direct debiting of margin loan interest?

      Yes. You may nominate your Accelerator Cash Account as the account from which your margin loan interest charges are debited.

    2. Do I have to nominate a hold amount if I have an Accelerator Cash Account?

      No. It is not mandatory to have a hold over any of your Accelerator Cash Account balance.

    3. How do I change or remove the hold amount on my Accelerator Cash Account?

      Simply send us a signed instruction by post or fax. Your hold amount will only be reduced or removed if your margin loan remains adequately secured afterwards.

    4. What margin loan borrowing limit is offered on the hold amount of my Accelerator Cash Account?

      A 100% lending ratio is offered.