A non-bank lender has aimed to boost its presence in the SMSF lending space through the launch of a simple mortgage product designed to cut through the complexity of the market.
Firstmac's Residential SMSF mortgage is being made available with both variable and fixed-rate options, in addition to boasting low fees and a rate that starts at 4.75%.
Kim Cannon, managing director at Firstmac, said the new offer aims to deliver a streamlined and good-value alternative to "a poorly-serviced market segment".
“We have chosen SMSF lending as the latest front in our battle to bring real competition to the market because we think we can deliver a much better product than anything currently on offer," he said.
The product, according to Cannon, is a "perfect solution" not only for borrowers aiming to purchase a new residential property within an SMSF but also for existing borrowers planning to refinance.
“As always, the hallmarks of our product will be greater simplicity, lower fees, and faster turnaround times than our competitors,” he said.
Cannon added that Firstmac's SMSF loan will have an easy-to-understand policy and process and will require minimal supporting documents.
“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," he said.
Additionally, according to the latest data from the Australian Tax Office, the self-managed superannuation funds have not been significantly affected by the COVID-19 outbreak.
In fact, SMSF owners' Australian residential property holdings increased 7.5% to $39.1bn over the past year. This gain was on the back of an 8.8% increase in their total non-recourse borrowings to $50.2bn.