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In recent years, SMSF lending has become an attractive option for SMSF trustees seeking to take control of their retirement savings and diversify their investment portfolio.
Unlike traditional superannuation portfolios, self-managed super funds (SMSFs) allow trustees to invest in a wide range of assets, including residential and commercial properties. By investing with funds from a superannuation account and using those funds to generate additional capital, SMSF trustees can potentially accelerate the growth of their retirement portfolio, maximising returns within the SMSF, provided they follow SMSF rules and act in the best interest of members.
As at 31 March 2023, the ATO recorded 606,217 SMSF vehicles, amounting to $61.6 billion, highlighting the importance of the SMSF segment of the overall mortgage market.
However, over the past decade, many lenders have left the SMSF market due to the complexities associated with the product. This often involves a different process and credit lens when compared to traditional residential mortgages. Another key difference is that SMSF lending extends to commercial properties. It is worth noting that there are almost twice as many commercial properties held under SMSF compared to residential properties.
Granite’s SMSF lending solution
Recognising this gap in the market, in 2020, Granite Home Loans decided to focus on SMSF lending as part of its core offering to the broker segment. Aiding brokers with a viable lending solution for their clients looking to further invest in property and increase their investment portfolio. Along with this, refinance alternatives are offered to borrowers who have already entered the market and who may be locked into a punitive interest rate with their existing lender.
This is where Granite Home Loans distinguishes itself as a leading provider of SMSF lending solutions. With their deep understanding of the intricacies of SMSF lending, Granite Home Loans has refined their offering to be simple to understand and simple to provide.
This has involved:
- Simplifying credit policy and applying a specific SMSF lens (as opposed to simply replicating traditional lending requirements);
- Tailoring pricing to reflect the strong credit quality associated with SMSF lending;
- Digitising the loan application process to make it easier for brokers to submit the application;
- Offering extensive training and support to the broker network to help them become more familiar and comfortable with SMSF Lending;
- Identifying and working closely with those brokers that wish to specialise in this area.
As a broker-only brand built purely for supporting brokers in niche lending, Granite Home Loans offers an innovative SMSF product with a range of features that set it apart from other competitors.
- Residential and Commercial loans;
- No minimum liquidity or asset testing;
- 100% offset account – freedom to make payments associated with SMSF expenses;
- Easy refinance solutions – helping mortgage prisoners with a simplified SMSF loan offering.
SMSF lending remains an attractive market segment for brokers to participate in and diversify their portfolio. For more resources, upcoming information sessions, or to become accredited, scan the QR code.
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