Achieving financial and lifestyle goals tends to cost money. Whether you’re saving a deposit for your first home, paying for school fees for your children, travelling or retiring early, smart wealth-building strategies can help you achieve these goals sooner.

Borrowing to invest is a strategy most of us are familiar with. It’s how we buy property. You save a deposit and then borrow the rest to purchase a property. But did you know you can also borrow to invest in managed investments as a way to build wealth?

NAB Equity Builder is a loan that lets you borrow money to invest in professionally managed and diversified investments.

As you repay your loan over a specified time, your NAB Equity Builder facility could help you accumulate wealth in two ways. Firstly, as you pay down the loan, you increase your equity in the purchased investments. Secondly, the value of your investments may increase over time.

Borrowing to invest can be a smart wealth building strategy but it’s also important to remember that investment decisions can come with risks.

1. The value of your investments could rise or fall depending on the market.

2. And gearing can either magnify losses or gains.

Case Study

Chloe wants to save $200,000 in 10 years and could use the money towards a house deposit, school fees or a family holiday. She has $30,000 to invest and is unsure of the options available. She seeks advice and learns that, based on her income and assets, NAB can lend her $70,000.

She now has $100,000 to invest on day one. This gives her a larger base from which to grow her money. Just like with a home loan, Chloe makes regular payments. After 10 years she’s paid back the $70,000 loan. Assuming she earns a 7% per annum return over 10 years, Chloe’s investment is now worth around $200,000.

NAB Equity Builder gives you increased exposure to the share market from day one with more than 950 investment options to choose from, and a choice of your loan time frame, with early payoff possible.

It’ll also provide you with a disciplined and goal-oriented savings program, as well as peace of mind knowing you don’t need to provide your home as security for your loan. You won’t have to worry about the threat of margin calls so you can stick to your financial plan without short-term volatility affecting your planned time in the market. At the end of the loan term, you’ll completely own the acquired investment portfolio and you can either keep it, cash it, or further invest.

With the right planning and advice, you can start your journey towards achieving your goals today.

NAB Equity Builder

Case study assumptions – hypothetical example only

The case study is based on a $30,000 investment and $70,000 loan. The principal and interest charges are repaid over a 10-year term. The investment of $100,000 is invested for a 10-year term and all income is re-invested over this term, resulting in 5% p.a. income return plus 2% growth return, which equals 7% p.a. total return.

The case study example is hypothetical and for illustrative purposes only and should not be considered as advice. The names and features do not represent any particular person or real outcomes. There is no guarantee that the performance stated will reflect actual outcomes and will vary depending on assumptions used for calculation purposes.

There are risks associated with gearing, which may make this strategy unsuitable for some investors, including that the value of your investments may rise or fall. The tax consequences of investing will depend on your particular circumstances. We recommend that you seek independent advice including professional tax advice before acting on any information in the case study.

To discover more call 1300 683 106 or email us on investordesk@nab.com.au

Important information

The information contained in current as at the date of publication and is intended to be of a general nature only.  It is not intended to be relied on as advice.  It has been prepared without taking into account any person’s objectives, financial situation, or needs.  Before acting on the information in this article, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial, taxation or other professional advice before acting on any information in this article.

All information in this article is intended to be accessed by the following persons ‘Wholesale Clients’ as defined by the Corporations Act. This article should not be construed as a recommendation to acquire or dispose of any investments. This Investment Insight is general commentary only and is not investment research or a research report. 

©2025 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.

NAB is the issuer of NAB Equity Builder and recommends you consider the Facility Terms and Product Brochure before making any decisions. The Target Market Determination for this product is available at nab.com.au/TMD.  This information is directed to and prepared for Australian residents only.