Self-managed super fund lending – with a difference

Promoted by Bluestone3 minute read
Self-managed super fund lending – with a difference

Drawing on a team with 15 years’ experience, Bluestone’s first self-managed super fund (SMSF) product is leading the way in compliance and ongoing support

IN AN uncertain economic environment, millions of Aussies are taking control of their retirement savings and managing their own super. And SMSFs are growing with an increase of 6 per cent in the number of self-managed super funds over the last five years. 

For some SMSF owners, property investment is an appealing way to build a strong income stream for retirement – but legislation is complex and there’s a lack of simple, easy-to-understand SMSF residential loan options around. 

Changing the face of SMSF lending

Non-bank lender Bluestone Home Loans is changing this, with the launch of their first SMSF  residential loan product. Bluestone’s SMSF property loan is designed with compliance in mind and allows borrowers to tap into the very significant potential afforded by property investment, whether purchasing a property or refinancing an existing SMSF loan. 

James Angus, chief customer officer at Bluestone says: “We’re excited to be bringing Bluestone’s first SMSF product to market and finding new ways to support brokers to meet their clients’ evolving needs. Last year, we identified a growing need for a market leading SMSF lending product with a focus on compliance, ongoing support and clear policy – that’s exactly what we’ve delivered.”

The opportunity for brokers is clear. Of the 597,000 SMSFs in Australia at 30 June 2021, many are choosing to invest in property – and are likely to look to their broker for the right lending solution. 

Simple set-up, ongoing support

Quick to set up, created with compliance in mind – Bluestone’s SMSF product is designed to provide ongoing support for borrowers. Unlike many other SMSF products, Bluestone has created a streamlined application process, which they’re looking to refine further by starting with a pilot program involving a small number of brokers. 

Richard Chesworth, head of specialised distribution at Bluestone says: “We believe in education and giving brokers the opportunity to leverage our 15 years of experience in SMSF lending – so they can diversify their own businesses. Support will be provided at every step of the process so brokers can feel confident their clients’ compliance needs are met – which is often a challenge in SMSF lending.” 

Created with compliance in mind

Bluestone’s SMSF loan lets eligible customers borrow up to $1.5 million and 80 per cent LVR, depending on property location. Due to potential compliance risks there is no redraw or offset facility attached to the loan. 

To be eligible, borrowers need a complying SMSF with a corporate trustee, with net assets greater than $200,000  and the related  property to be owned by a separate corporate security trustee. The loan is available for new purchases and refinances and comes with principal and interest as well as interest only terms. 

Mr Angus says: “For us, it’s about giving Australians access to more options for investing their super and allowing them greater choice to build wealth for their retirement. We’re committed to the journey – with ongoing support for brokers and customers throughout the process.” 

James Angus
chief customer officer

Bluestone started out as an Australian lender headquartered in Sydney in 2000. They manage over A$11bn in home loans...

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