Firstmac has launched a residential self-managed superannuation fund (SMSF) loan product as it looks to target the burgeoning sector.
Managing director Kim Cannon said its new “low-fee” product would deliver an alternative to what he said is the “poorly serviced” market segment that had billions of dollars in property assets.
He added that the product, which includes both variable and fixed-rate options, has no application fees, annual or ongoing fees, settlement fees, and no legal fees for a refinance, while requiring “minimal supporting documents”.
According to Firstmac, the latest ATO data shows that self-managed superannuation funds have not been deterred by the COVID-19 economic crisis and are investing heavily in property.
In 2020, SMSF owners’ Australian residential property holdings increased by 7.5 per cent, to $39.1 billion, on the back of an 8.8 per cent jump in their total non-recourse borrowings to $50.23 billion.
“At Firstmac, we like to keep things simple, even SMSF lending,” Mr Cannon said.
“We think that will make it a compelling proposition for brokers and their customers who don’t want to get bogged down in fees and red tape.”
The move comes as the SMSF loans space has been tipped to see increased efficiency in processes and is shaping up for a strong appetite this year.
