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The self-managed super fund space is now a major area of opportunity for brokers, with more than one in three now writing business in this sector.
According to a recent The Adviser straw poll, of the 274 respondents, 38.3 per cent of brokers said they had written an SMSF loan, while 61.7 per cent said they had not.
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Mortgage EZY’s head of sales and marketing Chris Wisbey said he wasn’t surprised that more than one in three brokers had already written an SMSF loan.
In fact, Mr Wisbey said he wouldn’t be surprised to see more than 50 per cent of brokers writing these products in the very near future.
“I think a lot of people have become disillusioned by the share market and the banks in general. While an SMSF loan is a financial product, it offers borrowers a lot more security, which allows them to control their life post retirement,” Mr Wisbey told The Adviser.
“As these products gain traction with borrowers, they will also gain traction with brokers.”
Mr Wisbey said Mortgage EZY’s SMSF product had been well received by brokers since its launch in June.
“Many brokers are under the assumption that these loans are incredibly complex and too difficult to write. While they can be challenging for traditional mortgage brokers, once they get their head around them, they are relatively simple products,” he said.
“Moving forward, I think we will see a large portion of the third party distribution channel opt to focus solely on writing these types of loans."
Brett Coombs of Chase Loans said his office had already written a number of SMSF loans.
“We are doing a lot with SMSF loans at the moment. This is really an untapped sector for brokers and can be very lucrative.”
