Specialty lender Liberty
Financial has introduced some major changes to its SMSF
SuperCredit Product that make it easier for broker clients to purchase commercial property.
As well as increasing the LVR from 70% to 75%, the lender has also extended the loan term from 15 to 30 years for owner-occupier and investor loans.
Liberty now also accepts a Certificate of Financial Advice as part of the SMSF SuperCredit application which results in less hassle for brokers when compiling the paperwork.
These changes will open the door to the SMSF market for borrowers and therefore brokers, said John Mohnacheff, group head of sales at Liberty.
“Offering this product at a higher LVR allows SMSF borrowers to use less of their superannuation fund money as a deposit to buy commercial property, which should make borrowing with their SMSF more appealing.”
The SMSF market itself is a “golden opportunity” for brokers to diversify their businesses and bring in new revenue streams, he said, especially since confidence in commercial property performance is at a record high.
“We wanted to make the application process as fuss free as possible, so by increasing the LVR and loan term, and simplifying the documentation required, we are hoping to see brokers write more SMSF loans for commercial property.”
SMSF lending has been a popular option for many brokers, Mohnacheff told Australian Broker
“Loan values currently vary month to month, but we can see as much as 50 per cent of Liberty’s commercial business written in the SMSF space some months.”
The lender also offers a competitive trail in line with the market on commercial SMSF lending, he said, making Liberty a very attractive options for brokers.
Liberty also works closely with a number of industry leading specialists to help first time SMSF borrowers manage any legal and compliance issues with their funds.
“The SMSF market has been impacted recently by tightened regulation which has seen some lenders move away from offering SMSF products. We’re still just as dedicated to servicing this part of the market, in fact, we want brokers to see these product changes as Liberty’s way of further committing to the SMSF lending space,” Mohnacheff said.
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