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The lender has launched a new commercial SMSF property loan, its first foray into business lending.
Non-bank lender Firstmac has launched its first commercial property loan, now offering a low-fee Commercial Self-Managed Super Fund (SMSF) property loan.
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The mortgage is targeting business owners seeking to buy their business premises through their SMSF.
Firstmac already has a Residential SMSF loan product (which it launched in 2021 with both variable- and fixed-rate options) and said that the new Commercial SMSF loan would offer “the same popular features”, including “a competitive interest rate and a streamlined lending process”.
The Commercial SMSF loan is available for both purchasers and refinancers looking to borrow up to $2 million with a maximum loan-to-value ratio (LVR) of 80 per cent.
Available with both variable- and fixed-rate options, variable rates start from 7.69 per cent (for 70 per cent LVR loans) or 7.99 per cent for 80 per cent LVRs.
Fees include a valuation fee (at cost), a $350 rate lock fee (if applicable), and a $490 SMSF review/trust fee (if applicable).
The non-bank said its “streamlined process” has been brought about as it manages all legal components internally and has minimal supporting document requirements.
Speaking of the launch, Firstmac’s chief commercial officer, Marie Mortimer, said the Commercial SMSF loan was aimed at “an underserviced business sector” that had been “abandoned” by the big banks.
“We understand that many business owners want the security of owning their business premises instead of being at the mercy of a landlord,” Mortimer said.
“Our new Commercial SMSF loan aims to make that as easy as possible, with far less of the complexity and red tape that often deters would-be SMSF investors, and the lowest fees on the market.”
Firstmac has become the latest lender to target commercial SMSF lending, as more borrowers find themselves squeezed out of bank policies.
Earlier this year, RedZed launched a similar Commercial SMSF product, while Pepper Money launched one into market in 2023. Commercial lender Thinktank has specialised in commercial SMSFs, noting a surge in this lending segment last year.
[Related: Surging SMSFs]
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