Case study: Ross Le Quesne, Aussie Parramatta

Case study: Ross Le Quesne, Aussie Parramatta

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The Adviser spoke to Aussie Parramatta franchisee Ross Le Quesne to find out how offering SMSF lending has helped diversify his business.

How long have you been offering SMSF lending?

Four to five years.

Why do you offer SMSF lending?

I do a lot of loans for property investors who are comfortable investing in their own name, so it’s natural for them to then want to invest in property through their super. It’s not something that I necessarily go and advertise, but it’s part of my clientele and part of the service that I offer.

How difficult is it for a residential broker to master SMSF lending?

It is complex because there’s a lot of regulation around SMSF lending, but once you get your head around it and create a system and process for dealing with that regulation, it makes it a lot easier.

How do you identify an SMSF lending client from amongst your residential loan book?

Generally it’s someone that’s currently investing in property. I think to invest in property in your own name first is a good start, but then obviously if they’ve got a decent-sized balance in their current superannuation fund, I always raise that conversation to them at that point in time.

Do you see more brokers moving into SMSF lending in the future?

It’s interesting at this point in time in the SMSF climate with what’s happening with APRA and what the banks are doing with investment lending. I wouldn’t be surprised if the banks reduce LVRs further on SMSFs as well, given that it’s a form of investment lending and they seem to be cracking down on investment lending in general. On the plus side, people who fail to qualify under the new personal servicing rules with APRA may then still be able to qualify if the loan is going to service within the fund itself, because some of the banks will view that differently to the way they look at personal servicing.

What would you say to brokers who are considering breaking into the SMSF lending space?

There’s definitely a highly regulated nature that comes with it. It’s definitely not for everyone, but there are many clients that can benefit from it. In saying that, you have to understand the responsibilities [that come with it] as a trustee.

Case study: Ross Le Quesne, Aussie Parramatta
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