Non-bank launches SMSF product

by AB11 Jul 2013

Non-bank lender Homeloans Ltd has launched a new SMSF product with an 80% LVR in response to what it describes as a ‘growth in demand’.

The Homeloans-funded ‘Classic SMSF’ product enables established SMSFs to borrow funds for the purchase or refinance of residential investment properties. It has a maximum loan size of $500,000 and a variable interest rate of 5.99% (comparison rate 6.18%).

“The new product certainly bolsters Homeloans’ SMSF offering and enables us to provide solutions depending on customers’ unique needs,” says Greg Mitchell, Homeloans’ GM, sales. “We have experienced steady growth in demand for our SMSF products and as such have created one with a low interest rate and higher LVR.”

“The opportunities provided by the SMSF market are significant, and we are working closely with brokers to provide both the products and the training needed to understand how to maximise these opportunities.”

The Homeloans Classic SMSF product is funded by Homeloans’ Residential Mortgage Trust (RMT).

“This is the first RMT-funded product launch in more than five years – prior to the GFC,” says Mitchell. “It demonstrates our ability to provide a range of products according to market needs and using a flexible range of funding options.”

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