How to Get Property-Style Leverage on Shares in Australia Without a Mortgage

Yes — you can get leverage on shares in Australia without buying a property.

For most of the past 30 years, that wasn't meaningfully true. The options were margin loans (high interest rates, margin calls, limited LVR) or nothing. Property had a near-monopoly on accessible, high-LVR, low-risk leverage.

That has changed. Three vehicles now give Australian investors the ability to amplify share market returns with borrowed capital — without a mortgage, without the tenant risk, and in two of the three cases, without a margin call.

Here is each option explained in plain terms, with the comparison you need to choose between them.

Why leverage matters in the first place

Leverage is the mechanism that turned ordinary property into extraordinary wealth. A 5% return on a $500,000 property is a 25% return on a $100,000 deposit. The underlying asset's return is modest. The leveraged return on your own capital is exceptional.

Shares have historically returned more than property before leverage. After inflation, Australian equities returned 7.81% per year over 145 years. Property returned 6.37%. But property investors with 80% LVR consistently outpaced unleveraged sharemarket investors — not because property was better, but because leverage amplified a good-enough return into a great one.

The question in 2026 is no longer "can you get leverage on shares?" You can. The question is which of the three available options suits your situation.

Option 1: Geared ETFs (the simplest)

A geared ETF is an exchange-traded fund that borrows money internally — at institutional wholesale rates — and invests the proceeds in a diversified index. You buy units like any other ETF on the ASX. There is no separate loan. No application. No credit check. No margin call.

How it works: The fund combines your invested capital with borrowed funds in a 60/40 ratio (approximately). For every $100 you invest, the fund effectively controls $143–$167 in market exposure. If the market rises 1%, your investment rises approximately 1.43–1.67%. If it falls 1%, your investment falls by the same multiple.

The fund manages its own LVR target (30–40%). When markets fall significantly, it sells a small amount of holdings to bring the ratio back within range — an automatic internal de-gearing that prevents catastrophic loss and eliminates margin calls for investors.

The BetaShares Wealth Builder range (the main Australian options):

Fund	ASX code	Exposure	Effective leverage	Annual fee
Wealth Builder Australia 200	G200	ASX top 200	~1.43–1.67×	0.35%
Wealth Builder Diversified All Growth	GHHF	Global + Australian diversified	~1.43–1.67×	~0.39%
Wealth Builder Global Shares	GGBL	Global shares (ex-Australia)	~1.43–1.67×	TBC
Wealth Builder Nasdaq 100	GNDQ	Nasdaq 100	~1.43–1.67×	TBC

Who this suits: Investors who want the simplest possible approach to leverage — buy units and hold for 10+ years, same as any other ETF. No paperwork, no repayment schedule, no bank relationship. Suits investors starting with any amount from $500.

What to watch for: Physical geared ETFs (like the BetaShares Wealth Builder range) borrow and buy real shares. Some other leveraged products are synthetic — they use derivatives that reset daily, creating volatility decay that destroys long-term returns. For buy-and-hold investors, physical only.

Option 2: NAB Equity Builder (the mortgage-familiar option)

The NAB Equity Builder is an investment loan that works structurally like a property mortgage. Monthly principal and interest repayments. No margin calls. Variable interest rate. You own the underlying investments (ETFs or managed funds) directly in your name.

How it works: You apply for a loan (minimum $20,000) from NAB. Once approved, the funds are used to purchase approved investments from a list of 950+ ETFs, listed investment companies, and managed funds. You make monthly P&I repayments that progressively reduce the loan balance. Your equity in the portfolio grows as markets rise and as you repay principal.

Key features:

• No margin calls — ever. The bank cannot force you to sell if markets fall.
• Interest is potentially tax-deductible against investment income (not salary, post-2026 budget rules apply — consult your tax agent)
• You own the investments directly — important for tax purposes (CGT discount, franking credits)
• P&I structure means you're building equity with every repayment, the same discipline mechanism as a mortgage
• Variable rate — currently in the range of 7–8% p.a. (check NAB's current rate before applying)
• Maximum LVR up to 75% depending on the approved investment

Who this suits: Property investors who are comfortable with a loan structure and want the familiarity of P&I repayments. Investors who want direct ownership of ETFs (rather than fund units) for tax optimisation. Those with $20,000+ to invest who want higher potential leverage than a geared ETF.

What to watch for: Variable interest rate can rise. Missing a repayment can result in investments being sold. Interest is potentially deductible against investment income — get specific tax advice on your structure.

Option 3: Margin loan (maximum LVR, maximum complexity)

A margin loan is a personal loan secured against your share portfolio. You apply through a broker or lender, borrow against your approved securities, and own the shares directly.

How it works: You deposit your own funds and borrow additional capital against your portfolio. The lender approves a maximum LVR for each security (commonly 50–70%). You can invest the total in approved shares or ETFs and retain all gains.

Key features:

• Highest available LVR of the three options — up to 70% on some securities
• Interest is fully tax-deductible against investment income
• You own shares directly
• Interest rates: approximately 9–10% p.a. variable (Bell Direct 9.90% effective May 2026)
• Margin calls exist — if your portfolio falls and your LVR breaches the agreed threshold, you must either contribute more capital or sell holdings immediately
• Flexible — you can choose individual stocks or ETFs, and change holdings actively

Who this suits: Experienced investors who understand margin call risk and want maximum LVR flexibility. Active investors who want to select individual securities. Investors with significant existing portfolios to use as collateral.

What to watch for: Margin calls are the defining risk. In a market decline, you may be forced to sell at the worst possible time. This is the mechanism that caused severe losses in GFC. Margin loans are not appropriate for investors who cannot monitor their portfolio regularly or who cannot contribute additional capital on short notice.

Use our Income Tax Calculator to estimate the tax benefit of deductible investment loan interest at your marginal rate.

The comparison you need

Feature	Geared ETF	NAB Equity Builder	Margin Loan
Max effective LVR	~40%	~75%	~70%
Margin calls	None	None	Yes
Loan application required	No	Yes	Yes
Credit check	No	Yes	Yes
Interest rate	Wholesale (embedded in fee)	Variable ~7–8%	~9–10% p.a.
Interest tax-deductible	No (management fee)	Yes — against investment income	Yes — against investment income
Direct share ownership	No (fund units)	Yes	Yes
Minimum investment	~$500	$20,000	~$10,000
Forced savings discipline	No	Yes (P&I)	No
Complexity	Very low	Medium	High

Three questions to find your option

Question 1: Do you want the simplest possible approach with no paperwork? → Geared ETF (G200 or GHHF). Buy units through any broker. Hold.

Question 2: Do you want a mortgage-style structure — P&I repayments, no margin calls, direct ownership? → NAB Equity Builder. Apply at NAB. Minimum $20,000. Variable rate.

Question 3: Do you want maximum LVR and flexibility, and can you handle margin calls? → Margin loan. CommSec, Bell Direct, or another margin lender. Understand the margin call mechanism before proceeding.

What stays the same as property

The mechanism that made property work — borrowing to amplify returns on a growing asset over a long time horizon — applies equally to all three share leverage options. The mindset that makes property investing successful applies here too:

• Think in decades, not months
• Don't check the price every day
• Don't sell in downturns — the volatility is temporary, the long-term direction is upward
• Contribute regularly and let compounding do its work

The difference is that you're applying that mindset to an asset class that has historically outperformed property by more than 1% per year after inflation — with no stamp duty, no tenants, no maintenance, and full liquidity.

See: The real reason property made Australians rich — and how to keep that working in 2026

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Frequently asked questions

Can you really get leverage on shares without a margin call in Australia?

Yes. Both geared ETFs (like G200 and GHHF from BetaShares) and the NAB Equity Builder provide leverage without margin calls. Geared ETFs manage their leverage internally — the fund de-gears gradually if markets fall, without calling investors for more capital. The NAB Equity Builder is a P&I investment loan where the bank cannot demand early repayment due to market movements (though missing scheduled repayments can trigger asset sales).

What LVR can you get on shares in Australia?

Geared ETFs (BetaShares Wealth Builder range) maintain a 30–40% LVR within the fund, providing approximately 1.43–1.67× effective exposure. The NAB Equity Builder can provide up to 75% LVR on approved investments. Margin loans can provide up to 70% LVR on approved securities. By comparison, Australian banks lend up to 80% (and up to 95% with LMI) for residential property.

Is borrowing to invest in shares tax-deductible in Australia?

Interest on investment loans (NAB Equity Builder, margin loans) is generally deductible against investment income in Australia. It is not quarantined in the same way as property losses — it remains deductible against assessable income. However, the 2026 budget did not change how share investment interest is treated. Always confirm your specific situation with a registered tax agent.

Is a geared ETF better than a margin loan?

For long-term buy-and-hold investors, geared ETFs are generally simpler and lower-risk than margin loans. They offer no margin calls, no application, institutional borrowing rates, and a low management fee. Margin loans offer higher potential LVR and direct share ownership (important for some tax strategies), but at higher interest rates and with margin call risk. The right choice depends on your investment amount, time horizon, and whether you want direct ownership for tax purposes.

What is the minimum amount needed to start leveraged share investing in Australia?

Geared ETFs: approximately $500 (the price of one unit of G200 or GHHF). NAB Equity Builder: $20,000 minimum approved credit limit. Margin loan: varies by lender, typically $10,000–$20,000 minimum. By comparison, the minimum for property leverage (a deposit) is typically $60,000–$150,000 for a median Australian city property plus stamp duty and costs.

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This article is for general information only and does not constitute financial, tax or legal advice. Individual circumstances vary. Consult a registered tax agent or licensed financial adviser before making decisions based on this information.