AMP Bank has launched its first loan product for the self-managed super fund (SMSF) market.
Dubbed AMP SuperEdge, the new product features a variable interest rate of 6.7% per annum.
The SMSF sector is the largest and fastest growing superannuation sector in Australia and AMP Bank chief operating officer Rob Slocombe says SuperEdge was developed to meet increased demand.
Slocombe says a growing number of SMSF trustees are looking to add bricks and mortar investments to their SMSF and that feedback from trials has been predominantly positive.
“AMP Bank engaged all our third party channels in the trial of AMP SuperEdge, including a sample of brokers across a number of aggregator groups. We had very positive feedback from both a product and process perspective. We incorporated some of this feedback into the product.”
Sloombe says the loan will be offered through AMP’s network of accredited mortgage brokers and financial planners as well as direct to customers.
“It’s got many of the same features as a regular home loan, so it will feel very familiar to customers, planners and brokers.”
SuperEdge enables trustees to borrow within their SMSF to buy a residential investment property or refinance an existing SMSF loan, which is repaid by the property’s rental income and contributions paid into the fund.