SMSF lending has around for 17 years, making it a well-established market. However, when we ask brokers in our education sessions, only 30% of brokers are actively handling SMSF loans. Here's a few steps to help expand your knowledge and grow in this space:
1. Start with an SMSF refinance
- Refinancing an existing SMSF loan is a great way to gain experience before tackling new purchases
- Keep your discussions within the scope of credit advice.
2. Work with your accountant referral partners
- Ask them how many SMSF loans they have on file and when were they last reviewed? (and in many cases, it's never).
3. Gather these key details from the SMSF financials for a select few clients and conduct a high-level serviceability review
- What is the value of the property? (No need for the address, however, always capture the suburb).
- What is the annual rent?
- What is the loan amount, annual interest cost and loan payments?
- What are the fund members annual contributions?
4. Drive Better Outcomes
- Running a high-level refinance calculator scenario can reveal significant savings, sometimes tens of thousands per year. These savings could improve cash flow and shift an SMSF from negatively geared to positively geared (ideal within an SMSF structure).
5. Share the potential savings with the accountant and request an introduction to the client.
- Meet with the SMSF client to review their lending position and explore their broader financing needs.
- Engage with your CHL BDM or Elevate BDM directly throughout the process for expert guidance and support in lodging the application via ApplyOnline.
The results:
- A satisfied accountant, because you helped them add value to their client.
- A happy SMSF client, enjoying improved cash flow and interest savings that support retirement goals.
- A stronger business for you, gaining experience in SMSF lending and expanding your client base.
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