So it’s official, we are in a recession – 2020 has delivered none of what it promised, yet delivered heartache and pain for a lot of people. I’m sure you’re as over it as I am!
But we also know where there is disruption, there are opportunities.
With this in mind, I have asked one of our more “nimble” lenders Mortgage Ezy to write about their experience in the current lending environment. Mortgage Ezy are our “go-to” lenders in the SMSF space. For those accountants who have clients with SMSF lending, it may be a great time to for them to revisit their situation. It is likely they are paying “overs”….
For those new to SMSF lending, it is critical to know this is still a widely accepted product for the right situation.
From Mortgage Ezy.
2020 has seen much disruption to the mortgage lending space due to COVID 19 with many lenders removing themselves totally from lending avenues such as SMSF. Mortgage Ezy strives to fill the gaps which others dare not enter. As the go-to SMSF lender, our goal is to ensure that these crucial sectors of the market are serviced and all clients get their fair go. SMSF has proved a stable and robust lending alternative for the savvy investor during these tougher times. This is directly correlated to the ability to cover repayments with rental income, low LVR’s and arrears which tend to be non-existent. We personally are experiencing a higher than usual number of refinances as customers seek a better and fairer rate. The ABS reported that SMSF made up a menial 5% of the market in 2012, with it growing to an unprecedented 20% at present-day.
Mortgage Ezy has launched to the next level with our newest SMSF product. Designed to support refinances of client who are at other Lenders and paying rates well above 6%. With our rates starting from 4.99% discounted and the ability to service inside the super fund only. SMSF is the preferred vehicle for many sophisticated investors and Mortgage Ezy’s diverse SMSF range caters for both residential and commercial clients. We have the ability to lend to off-the-plan, newly established properties and NDIS is acceptable.
As servicing is determined by the fund directly, personal liabilities and other debts are not required or looked at. This is one of the many reasons that SMSF loans are an attractive option for investors looking to build a multi property portfolio. If the client has already reached their maximum personal exposure they need not worry. These same figures can be used in SMSF servicing where the loan will be able to pass as it is assessed on the merits of the fund, not the person. According to the ATO, the average assets of SMSFs have been reported to sit at the 1.2 million dollar mark as of June 2019 and totalling more than 3 billion dollars per month for residential properties.
If this wasn’t enough already to help get your clients up and moving, Commercial SMSF loans have traditional sat in the 8% range. With Mortgage Ezy, our brokers have access to a captivating rate starting at just 4.99%.
You are not alone in your journey to expand your horizons. As the market leader in the SMSF space, we are here to support you. Our team of experts can take you through a series of dedicated SMSF ‘How-to’ sessions and within 2 hours you will have a firm grasp on the fundamentals for your first SMSF deal. Within 6 months, this newly learnt alternative could make up a further 20% of your business which we have witnessed firsthand with brokers we work with day in day out.
This space is not one to fear. Clinton Sharpe, FBAA BDM of the Year recommends taking the road less travelled, he says “SMSF is a fantastic way to expand your business and help your clients. And it is important you seek out those experts. This new avenue of exploration that maybe you haven’t even considered before is something that might just surprise you”.
If you believe like we do, that this is a space worth exploring further, jump onboard and start up-skilling today. What have you got to lose? With the support of Steve Lake from National Lending Group (NLG), Clinton Sharpe from Mortgage Ezy, would like to hold an introductory session on SMSF lending and how it can help build your accounting firm. We are opening this to Accountants so we can educate you further on this product. Here you will come away with an understanding of the basic principles, products and niches that can be used to help your clients growth their property portfolio, and you grow your business.
Our webinar will be held on Wednesday the 7th October 2020, 1.00pm (Mel/Syd/bris). Click the link below to register.
We look forward to seeing you there.
- NLG Education Series Part 2 – SMSF Lending for Accountants - 11 July 2023
- NLG Education Series Part 1 – Commercial lending for accountants - 27 June 2023
- Nuts and bolts: How to refer your clients - 8 March 2023