Non-bank lender Firstmac has moved to shake up the SMSF lending market, launching a simple, low-fee product with both variable and fixed-rate options.

Managing Director Kim Cannon said the new Residential SMSF product would deliver a stream-lined, good-value alternative to a poorly-serviced market segment that had billions of dollars in property assets.

“We have chosen SMSF lending as the latest front in our battle to bring real competition to the market because we think we can deliver a much better product than anything currently on offer,” Mr Cannon said.

“As always, the hallmarks of our product will be greater simplicity, lower fees, and faster turnaround times than our competitors.”

The latest ATO data shows that self-managed superannuation funds have not been deterred by the COVID-19 economic crisis and are investing heavily in property.

In 2020, SMSF owners’ Australian residential property holdings increased 7.5 per cent, to $39.1 billion, on the back of an 8.8 per cent jump in their total non-recourse borrowings to $50.23 billion.

Mr Cannon said the new Firstmac SMSF product would have the lowest fees in the market, with no application fee, no annual or ongoing fees, no settlement fee, and no legal fees for a refinance.

“At Firstmac, we like to keep things simple, even SMSF lending,” Mr Cannon said.

“Our new product is SMSF lending made easy, with easy-to-understand policy and process and minimal supporting documents required.”

“We think that will make it a compelling proposition for brokers and their customers who don’t want to get bogged down in fees and red tape.”

Firstmac’s SMSF loans will start at 4.75%.

“The Firstmac SMSF suite is the perfect solution for customers looking to refinance for a more competitive offer or purchase a new residential property within an SMSF,” Mr Cannon said.

Firstmac Limited is an independently-owned, Australian financial services provider with more than 40 years’ experience in home and investment loans. Firstmac has written in excess of 130,000 home loans and manages approximately $12 billion in mortgages and $300 million in cash investments. Firstmac is a premier sponsor of the Brisbane Broncos.

Media contact: Duncan Macfarlane on 0434 184 264

Firstmac Limited is an independently-owned, Australian financial services provider with more than 40 years’ experience in home and investment loans. Firstmac has written in excess of 130,000 home loans and manages approximately $12 billion in mortgages and $300 million in cash investments. Firstmac is a premier sponsor of the Brisbane Broncos.