Pepper Money Answers The Call For Brokers with "Super Smart" Approach To SMSF Lending

Leading non-bank lender, Pepper Money has announced the launch of its new Self-Managed Super Fund (SMSF) loans, designed for SMSFs wanting to purchase or refinance an existing property.

Developed in partnership with brokers, the ‘super smart’ SMSF loan from Pepper Money is available for both residential and commercial properties, with a focus on providing certainty up front and fast service, alongside the flexibility the non-bank is known for.

The growth opportunity in this space was most recently highlighted in the Australian Tax Office’s (ATO) SMSF quarterly statistical report¹ from June 2023. According to the report, SMSF’s hold an estimated $876.4 billion in total assets and there were almost 598,000 SMSFs, an increase of 4% on the previous year. Amid this resurgence of people looking to buy the right investment properties in their fund, and the exit of major banks in this niche market, Pepper Money’s timely launch addresses the gap in the market with a ‘super smart’ approach to SMSF.

Pepper Money’s General Manager, Mortgages and Commercial, Barry Saoud said that, against this backdrop, there is also an opportunity for brokers to add value for their clients, given banks have retreated from this specialised lending space.

“SMSF lending is being embraced by a growing number of Australians as one way to have some control and independence over their financial future. The increased appetite for these loans, coupled with the lack of options for borrowers, presents an opportunity for brokers to add value for their current clients, as well as potentially adding new business streams to their practice.”

“We often observe that while a client’s existing SMSF may be servicing the loan, many aren’t clued into the rate they are on. This ‘set-and-forget’ mentality could mean some clients are on a rate without questioning it. Our new SMSF loan offering now provides brokers with a ‘super smart’ approach for existing SMSF clients who aren’t getting the sharpest solution from traditional SMSF lenders.”

What makes the Pepper Money SMSF loan ‘super smart’, is our pre-approval feature – a rarity in the industry, empowering brokers to understand what their clients can borrow through their SMSF so that they can assess their options upfront. We are renowned for our fast and flexible approach and now we’re extending this approach and instilling broker confidence with pre-approvals in the SMSF space.

“Along with our Service Level Agreement (SLA) of one business day, we also offer a maximum of two redraws per anniversary of the loan, to a maximum of $50k per transaction for repairs and maintenance of the security,” Saoud said.

Another unique aspect to Pepper Money’s SMSF loan is that it offers brokers with direct access to Pepper Money’s credit team and a digital apply solution for an effortless broker and client experience. The leading non-bank can also consider clients who are directors of companies with credit impairment across both residential and commercial SMSF loans.

“There’s a clear opportunity for brokers looking to diversify their business into SMSF finance and strengthen their relationships with existing clients by offering sharp rates with our ‘smart’ approach,” Saoud said.

Two of Australia’s largest aggregator groups who were closely consulted with during the pilot phase welcomed Pepper Money’s official SMSF launch.

Michael Goerner, Head of Connective Home Loans said: “The introduction of Pepper Money’s SMSF loan to our white label offering has broadened the solutions available to brokers on SMSF transactions with some unique policy and product niches in this very competitive market.

This initiative not only addresses the real and evolving needs of customers in this type of lending, but it also demonstrates Pepper’s awareness of the market and dedication to delivering practical solutions and exceptional broker and customer experiences. Fresh options in this space means brokers and their clients continue to have access to greater choice. We’re thrilled that this SMSF offering will be available through our White Label Connective Home loans from November.

Jas Fazlic, National Commercial Manager at Finsure also welcomed the introduction:

This new offering further supports brokers to diversify and meet the evolving needs of their new and existing client base with greater breadth of options and services. Pepper Money developed this product in partnership with some of our brokers and implemented feedback to make this a really compelling solution which will also be available in our Finsure Loan PLUS loan offering next month.

Saoud concluded, “With options across personal loans, home loans, commercial and SMSF, Pepper Money now has options that help meet the generational needs of your clients across a lifetime of circumstances.”