2024 Borrowing To Invest Report

Borrowing to Invest Surges as More Australians Embrace Gearing Strategies

• Gearing to invest is growing faster than the overall online investor population – The number of geared investors rose to 100,000 in 2024, outpacing the 10% growth in online retail investors.
• Younger investors are driving demand for margin lending – Many new users are motivated by long-term financial goals, including saving for property and boosting retirement funds.
• Client satisfaction with margin lending providers has improved – Overall satisfaction rose to 66%, up from 60% in 2023, with swift responses to cash rate changes boosting user advocacy.

4 March 2024, Sydney – Investment Trends has released its 2024 Borrowing to Invest Report, providing key insights into gearing trends, margin lending, and investor preferences in Australia.

The latest report shows retail online investor numbers grew 10% to 1.33 million (from 1.22 million in November 2023), with those using gearing increasing at an even faster pace. The number of geared investors rose from 84,000 in 2023 to 100,000 in 2024, with pre-retirees (55–64) now making up 12% (up from 7%) and retirees (65+) accounting for 8% (up from 6%).

Copyright 2025: Investment Trends. 2024 Borrowing to Invest Report

Despite this growth, margin lending usage has slightly declined from 50% of borrowers in 2023 to 48% in 2024, as more investors turn to home loan redraw facilities (38%, up from 33%). 28% of margin lending investors plan to reduce borrowing in the next 12 months, citing interest rates and margin call risks.

“The rise in geared investors presents a strong opportunity for margin lending providers,” said Yiğit Günhan, Senior Analyst at Investment Trends. “Investors are looking for cost-effective, accessible financing solutions, and margin loans continue to provide a valuable avenue for those seeking to enhance their investment potential.”

The report also highlights rising client expectations, particularly among new margin lending users who are younger, more likely to be female, and influenced by promotions. Younger investors entering the margin lending market are primarily driven by long-term financial goals, with many using margin loans to accelerate savings for property purchases and retirement. While 12% of new margin lending users cite saving for a home deposit as a key motivator, 14% are focused on boosting their retirement savings.

Investors want greater flexibility and stronger risk management tools,” Günhan explained. “Margin lending providers that offer seamless integration, real-time alerts, and personalised financing options will be well-placed to attract new clients.”

Overall client satisfaction with margin lending providers has risen to 66% (up from 60% in 2023), with significant improvements in fees (+9%), loan management (+7%), and website navigation (+7%). The Net Promoter Score (NPS) remains negative at -11%, though it has improved from -37% in 2023.

“Investors are responding positively to improvements in service,” said Günhan. “Brokers who provide proactive rate adjustments and improve client support will foster stronger advocacy, ultimately driving market share growth.”

The Investment Trends 2024 Borrowing to Invest Report provides insights into the evolving demand for investment financing, helping financial institutions refine their strategies to meet investor needs.

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