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SMSF lending opens more doors than you think

by John Mohnacheff4 minute read
Open door

After buying a family home, managing super is one of life’s biggest decisions. Despite this, for a long time many hardworking Australians have taken a “set and forget” approach and opted in to their default employer superannuation fund.

Recently this has been changing. More people are looking to manage their own super fund and take control of their future with active choices around buying investment property and shares.

The self-managed super fund (SMSF) sector is the fastest-growing of the Australian super industry. In the five years to mid-2015, SMSF assets grew 44 per cent (or $181 billion) – that’s more than 100,000 new SMSFs – and there are now in excess of half a million self-managed super funds in total. The market is already big – and it’s getting bigger.

With lots of opportunities to help with SMSF loan products, here’s why you should be paying more attention to this growing consumer base:

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Diversification

At a time when regulatory pressure continues to shape the lending market, the need for brokers to diversify and find new revenue streams has never been stronger. Thankfully, there are lenders, such as Liberty, that remain active in the SMSF lending space and can assist brokers to continue to diversify.

Stand out

SMSF lending can also be a real differentiator for brokers who are pitching to potential referral partners. Many brokers have found approaching financial planners or accountants and asking for lending referrals to be a valuable source of additional income. However, many accountants and financial planners find themselves inundated with offers from different broker groups. Competition is hot, so brokers need to find more ways to stand apart from their competition. Offering access to SMSF lending solutions is one clear way to do this.

It’s not complicated

Liberty has a straightforward approach to SMSF lending that reduces complexity and cost. Once a financial planner has been engaged and a bare trust established, Liberty is able to work with the client and their financial adviser to set up the SMSF loan. Unlike many other lenders, Liberty accepts both residential and commercial property as security.

Negative gearing

While it’s hard to predict, recent announcements suggest SMSF lending is here to stay and negative gearing as we know it may not. Regardless, we can expect plenty of speculation and ongoing property investment, so having your SMSF lending bases covered puts you in the best position to help your investment loan customers now and into the foreseeable future.

John Mohnacheff is the national sales manager at Liberty Financial.

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