Pepper Money unveils "super smart" SMSF loan offering

Finsure and Connective Home Loans welcome the move

Pepper Money unveils "super smart" SMSF loan offering


By Mina Martin

Pepper Money has introduced its new self-managed super fund (SMSF) loans, tailored for SMSFs looking to acquire or refinance an existing property.

Developed in collaboration with brokers, Pepper Money’s “super smart” SMSF loan is accessible for both residential and commercial properties.

Recent ATO statistics highlighted the growth potential in this sector. According to the agency’s June quarter report, SMSFs collectively hold roughly $876.4 billion in assets, with nearly 598,000 SMSFs, up 4% from the previous year.

Amid growing interest in buying suitable investment properties within SMSFs and the withdrawal of major banks from this market, Pepper Money said the timely launch of its “super smart” approach to SMSF fills the gap.

Barry Saoud (pictured above), Pepper Money's general manager of mortgages and commercial, noted that within this context, brokers are presented with an opportunity to add value for their clients as well as add 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. This ‘set-and-forget’ mentality could mean some clients are on a rate without questioning it,” Saoud said in a media release.

He said the non-bank’s new SMSF loan offering offers brokers a “super smart” approach for existing SMSF clients who may not be receiving the sharpest solution from traditional SMSF lenders.

“What makes the Pepper Money SMSF loan ‘super smart’, is our pre-approval feature – a rarity in the industry, empowering brokers to understand what their clients can borrow through their SMSF so that they can assess their options upfront. We are renowned for our fast and flexible approach and now we’re extending this approach and instilling broker confidence with pre-approvals in the SMSF space,” Saoud said.

“Along with our service level agreement (SLA) of one business day, we also offer a maximum of two redraws per anniversary of the loan, to a maximum of $50k per transaction for repairs and maintenance of the security.”

Another unique feature of Pepper Money’s SMSF loan is the direct access it provides the non-bank’s credit team as well as a user-friendly digital apply solution to ensure a seamless experience for both brokers and clients. The lender is also open to considering clients who are company directors with credit challenges, across both residential and commercial SMSF loans.

“There’s a clear opportunity for brokers looking to diversify their business into SMSF finance and strengthen their relationships with existing clients by offering sharp rates with our ‘smart’ approach,” Saoud said.

Connective Home Loans and Finsure – two of Australia’s largest aggregators who were consulted during the new product’s pilot phase – welcomed Pepper Money’s official SMSF launch.

“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,” said Michael Goerner, head of Connective Home Loans. “Fresh options in this space means brokers and their clients continue to have access to greater choice.”

“This new offering further supports brokers to diversify and meet the evolving needs of their new and existing client base with greater breadth of options and services,” said Jas Fazlic, national commercial manager at Finsure.

Pepper Money’s new SMSF offering will be available through Connective Home Loans’ white label offering and Finsure’s Loan PLUS loan offering from November.

“With options across personal loans, home loans, commercial and SMSF, Pepper Money now has options that help meet the generational needs of your clients across a lifetime of circumstances,” Saoud said. 

Pepper Money’s Smart SMSF solutions:

  • Lending up to $3 million for both residential and commercial property
  • Only $200,000 net assets are required and no liquidity requirements
  • Redraw twice a year per the anniversary of the loan, up to $50k at a time (For SIS Act compliant purposes).
  • O/O purpose (associated trading business) available for commercial
  • 30 year loan terms with up to five years I/O
  • Director with credit impairment accepted
  • Digital and manual application submission

Until January 12, prime interest rates for residential properties start at 6.99% and near prime at 7.69%, with a 50% discount on the establishment fee. In the commercial sector, prime interest rates begin at 7.89%, and near prime from 8.69%.

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