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ISCOVER
Staff Reporter
Self-managed super fund loans are proving popular with home buyers, with one non-bank lender recording a 50 per cent spike in SMSF activity.
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Yesterday, Homeloans announced it had seen a 50 per cent increase in demand in just over six months for the Homeloans ProSmart Self-Managed Super Fund.
Homeloans general manager sales Greg Mitchell said the popularity of the ProSmart Self-Managed Super Fund, which enables trustees to include property as part of their SMSF portfolio, has exceeded all expectations.
“As a mortgage solution provider, the new products we have introduced have been right for the market at the right time. Despite a sluggish property market, we were pleased to be able to deliver financial results in line with expectations, and our strategy to expand and evolve to market demand is paying off,” he said.
In the last few years, Australia has seen the SMSF sector become the fastest growing in the Australian superannuation industry.
In addition, the exposure of SMSFs to property almost doubled in just over two years to $58.4 billion in 2010, according to the ATO.
Homeloans’ ProSmart Self-Managed Super Fund product enables established SMSF customers to borrow funds for the purchase or refinance of residential investments properties. It offers low and variable fixed rates, LVRs up to 70 per cent and loan amounts up to $2 million with no ongoing fees.
“With more than 6000 accredited brokers, our SMSF product can provide brokers with another revenue stream. For example if a broker has a strong relationship with financial planners and accountants, sales can be generated through the established client base, interested in investing in property through a super fund,” Mr Mitchell said.
“Every Homeloans accredited broker can write this product and with the current levels of enquiries and number of brokers attending our seminars, we are anticipating an increase in volumes of higher than 40 per cent in this new wave of residential property investment.”
