Pepper Money launches SMSF lending

Non-bank lender Pepper Money’s new “super smart” self-managed super fund (SMSF) loan was developed in partnership with brokers and is designed for SMSFs wanting to purchase or refinance an existing property.

The loan is available for both residential and commercial properties, with lending of up to $3 million for each.

In addition, the SMSF loan offers brokers direct access to the non-bank lender’s credit team along with a digital apply solution.

According to the non-bank lender, the launch of its SMSF loan came on the heels of a quarterly statistical report released by the Australian Taxation Office (ATO) that highlighted growth opportunities in the SMSF space.

The report estimated that SMSFs hold $876.4 billion in total assets with almost 598,000 SMSFs, revealing an increase of 4 per cent on last year.

Pepper Money stated the launch addresses “the gap in the market” among a resurgence of people seeking to purchase investment properties and the major banks exiting the market.

Pepper Money general manager, mortgages and commercial Barry Saoud stated there is also opportunities for brokers to add value for their clients as the banks withdraw from this specialised lending space.

“SMSF lending is being embraced by a growing number of Australians as one way to have some control and independence over their financial future,” Mr Saoud said.

“The increased appetite for these loans, coupled with the lack of options for borrowers, presents an opportunity for brokers to add value for their current clients, as well as potentially adding new business streams to their practice.

“We often observe that while a client’s existing SMSF may be servicing the loan, many aren’t clued into the rate they are on.”

Head of Connective Home Loans, Michael Goerner, said the introduction of Pepper Money’s SMSF to the aggregator’s white label offering has “broadened the solutions available to brokers on SMSF transactions with some unique policy and product niches in this very competitive market”.

“We’re thrilled that this SMSF offering will be available through our White Label Connective Home loans from November,” Mr Goerner said.

“This initiative not only addresses the real and evolving needs of customers in this type of lending, but it also demonstrates Pepper’s awareness of the market and dedication to delivering practical solutions and exceptional broker and customer experiences.”

National commercial manager for Finsure, Jas Fazlic, welcomed the SMSF loan launch, stating that it further supports brokers to “diversify and meet the evolving needs of their new and existing client base”.

“Pepper Money developed this product in partnership with some of our brokers and implemented feedback to make this a really compelling solution which will also be available in our Finsure Loan plus loan offering next month,” Mr Fazlic said.

[RELATED: Australia ‘should avoid’ recession: Pepper Money CFO]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.