Non-bank lender So Money has entered the self-managed super fund (SMSF) lending space, launching a new product aimed at trustees seeking to diversify their investment strategies.
SMSFs held nearly $1 trillion in assets as of June 2024, including $168 billion in property. With major banks out of SMSF lending, non-banks are stepping in to meet trustee demand.
“So Money’s new SMSF loan was created in direct response to broker and client feedback,” the company said. “SMSF investors need a lender who can move quickly, structure loans around their fund’s requirements, and still deliver competitive pricing. That’s exactly what we’re offering.”
The new product, known as the VIVD SMSF loan, is designed with multiple servicing structures to suit different borrower profiles and investment strategies. Key features include:
Loan sizes from $150,000 to $2 million
Loan-to-value ratios (LVRs) up to 80%
100% offset account with interest on surplus funds at the loan rate
Rates starting from 6.04% p.a.
Minimal income serviceability requirements tailored to SMSF structures
Available for residential and selected commercial properties nationwide
Other broker-friendly elements include no clawbacks, express rental cover servicing, and acceptance of contributions up to $30,000, with exceptions considered for higher amounts.
With the major banks no longer active in the SMSF lending space, non-banks and specialist lenders are stepping in to meet trustee demand.
For brokers, So Money’s new product could represent an opportunity to expand their client base. SMSF lending remains a niche but growing area, driven by trustees who want more control over their superannuation investments.
The introduction of So Money’s VIVD SMSF loan underscores the increasing role of non-bank lenders in filling service gaps left by the majors and providing brokers with new solutions for clients.
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