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Jessica Darnbrough
A majority of brokers have now written a Self Managed Super Fund loan, new research has revealed.
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According to the latest The Adviser straw poll, 50.2 per cent of brokers have written an SMSF loan, with 10.9 per cent admitting they write these types of loans on a “regular” basis.
Of the 247 respondents, 21.5 per cent said they rarely write these types of loans, while 17.8 per cent admitted to “occasionally” writing these products.
Speaking to The Adviser, Liberty Financial’s general manager of commercial finance Suresh Pillai said there are significant opportunities for brokers who write SMSF products – something the industry is slowly starting to learn.
“These opportunities are underpinned by the increasing popularity of SMSFs as more Australians are seeking to take greater control of the performance of their superannuation funds. Further, Australia’s love-affair with property means that people who are in control of their superannuation are increasingly investing directly in property using SMSF loans to obtain maximum gearing benefits,” he said.
“This is only going to grow with the current market volatility given that property is seen as a relatively safe investment.”
Mr Pillai said while the benefits of writing SMSF products were abundant, he understood why almost 50 per cent of brokers hadn’t written an SMSF loan in the past.
According to Mr Pillai, there is a stigma in the broking industry that SMSF loans are too complex to write, however, he said this was simply an outdated myth.
“The process of obtaining an SMSF loan has become more and more straightforward as lenders such as Liberty have developed the technical and support infrastructure to assist brokers. For example, Liberty’s SuperCredit loan was designed to remove many of the complexities that are involved in establishing an SMSF borrowing structure, and provide both the customer and the broker with a streamlined experience,” he said.
“As a result, brokers really need not worry if they do not have much knowledge of this type of loan; in many ways if you can write a regular home or commercial loan you can write an SMSF loan, as the lender should be able to provide the necessary support – for example, we have an experienced sales and underwriting teams with expertise in this area. The real risk for brokers who have not written an SMSF loan is that they are missing out on a substantial opportunity to add value to their clients.”
