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Mary Sartinas is one of many brokers who has followed the rise in demand for SMSF loans in recent years. She tells The Adviser what it’s like working with clients in this space
How many SMSF loans do you write?
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Numbers wise, I couldn’t tell you exactly, but it’s a significantly growing area at the moment. We run seminars on the topic and we get an influx of enquiries from the seminars that we run. By the time you filter through and identify the ones who are not in a place to move forward with their SMSF, it’s a very big difference. We might have 20 enquiries, of which five are ready to proceed. We make sure the clients have done their due diligence and spoken to their financial planner and their accountant to receive strategic advice before they’re ready to put the finance together.
What are the benefits of being involved in this space?
Gearing in super is currently gaining momentum and being able to offer a service in this niche area has given us the opportunity to stand out and secure a position as experts in this field. As a broker, it’s essential that I cater to the specific needs of my clients and gearing in super is a growing market that I can’t ignore. The primary benefit is knowing that I have been able to look after my clients on a holistic level.
How do you find potential SMSF clients?
Our key referral partners are accountants and financial planners. However, we also receive referrals from solicitors who know that we specialise in this field. These professionals are already working very closely with clients, so a referral is a natural step when they are discussing SMSFs with their clients.
Every broker probably already has an existing client who is in need of an SMSF loan; it’s just a matter of asking the question or presenting the service to your existing clients. Since this is an area that we specialise in, we have made it form part of our service proposition and, as a result, our referral partners – who include our clients, financial planners and accountants – automatically refer any new enquiries to us. We also actively run our own seminars on gearing in super, which have subsequently opened up the opportunity for me to speak at other industry partner events. Because it’s such a niche area, it doesn’t take long for the word to get out and the referrals to start coming in.
How difficult is it to write SMSF property loans?
The complexity is significantly greater than your average ‘mum and dad’ deal. It requires a degree of understanding of trust structures and, over and above that, an understanding of the specific structures around SMSFs.
What do you attribute the increase in demand for SMSFs to?
The opening in the legislation [allowing investors] to use their funds to invest in property [has been the key]. On top of this, the media has also heightened interest in this area.
