A leading specialty lender has announced that it has made changes to one of its self-managed super fund products in a bid to make it easier for brokers to help these customers purchase commercial property.
Liberty has increased the loan-to-value ratio for its SMSF SuperCredit product from 70 per cent to 75 per cent and increased the loan term from 15 years to 30 years, for both its owner-occupier and investor loans.
The non-bank is also now accepting a Certificate of Financial Advice as part of any SMSF SuperCredit application, to create “less hassle” for brokers when pulling together the paperwork for a loan.
John Mohnacheff, group sales manager at Liberty, said the product changes will open up the SMSF market to more borrowers and potentially help brokers write more SMSF loans for commercial property.
He commented: “We wanted to make the application process as fuss-free as possible… Offering this product at a higher LVR allows SMSF borrowers to use less of their superannuation fund money as a deposit to buy commercial property, which should make borrowing with their SMSF more appealing.
“The SMSF market presents a golden opportunity for brokers to diversify their businesses and drive new revenue streams. With confidence in the performance of commercial property at a seven-year high, this is a great time to be making SMSF products more accessible.”
Mr Mohnacheff said that although the SMSF market has been impacted recently by tightened regulation (which has seen some lenders move away from offering SMSF products), he emphasised that Liberty was “still just as dedicated to servicing this part of the market”.
He concluded: “We want brokers to see these product changes as Liberty’s way of further committing to the SMSF lending space.”
[Related: Non-bank waives fee for custom home loans]
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