The non-bank is now offering full-doc SMSF residential loans of up to $1 million with a loan-to-value ratio of 90 per cent and no lenders mortgage insurance.
Pepper Money has introduced a new lending option for self-managed super funds (SMSF), allowing clients to borrow up to 90 per cent of the value of the residential property (up to $1 million) without incurring lenders mortgage insurance (LMI) or a Lenders Protection Fee (LPF).
The new policy enhancement applies to SMSF Residential Full Doc Loans and enables SMSF clients to only need a 10 per cent deposit.
Barry Saoud, Pepper Money’s CEO, mortgages and commercial, stated the changes were brought in following surging investor demand and broker feedback.
“Our SMSF loan volumes have grown by more than 50 per cent this year – and the momentum is still building,” Saoud said.
“Brokers are telling us they need more flexible options to meet growing demand – and we’re listening.”
The non-bank indicated that the new 90 per cent LVR option is intended to remove barriers, such as minimum deposit requirements or high insurance costs, that have held back many SMSF clients.
“For SMSF investors, this is a big shift. They can now purchase with just a 10 per cent deposit and no mortgage insurance – potentially saving their super fund tens of thousands,” Saoud added.
“As the lending landscape shifts, we’re focused on helping brokers say yes to more clients. Whether it’s an investor using their SMSF to buy property, or a business owner needing a flexible solution – we’re raising the bar so brokers can grow their business with confidence.”
The introduction of the 90 per cent no-LMI SMSF loan is part of the company’s commitment to being “the broker’s champion”, Saoud said and added that the non-bank aims to deliver “really helpful loan options that make a difference”.
Pepper Money first launched its SMSF offering in 2023, following growing interest from broker clients.
[Related: Pepper Money unveils SMSF loan offering]
