Specialist residential property lender Bluestone Home Loans has released a new SMSF loan product offering up to $1.5 million for corporate trustee funds holding a property via a bare trust structure.
Bluestone stated its SMSF Residential Loan was open to complying SMSFs with a corporate trustee with net assets greater than $200,000 where the related property was owned by a separate ‘corporate security trustee’ or bare trust.
Loans can be used for new purchases or refinancing and principal and interest as well as interest-only terms are available, but no redraw or offset facility is attached to the loans.
According to documents on the Bluestone website, minimum loan amounts are $100,000 and minimum loan terms are 15 years, while the maximums are $1.5 million and 30 years, respectively, with an 80 per cent loan-to-value ratio depending on property location.
Bluestone Home Loans chief customer officer James Angus said the new product was designed to meet the needs of the growing SMSF sector and mortgage brokers supporting SMSF clients.
“With more than 1 million Australians having made the decision to take more control of their own superannuation, we created our SMSF residential loan product to enable more brokers to meet the needs of an underserved market,” Angus said.
“This presents an enormous opportunity for brokers as many SMSFs are keen to invest in property to build a substantial income stream for retirement.
“We spoke to brokers earlier this year to understand their needs and frustrations regarding SMSF loans. As a result, we’ve designed this product based on three fundamental principles: a focus on compliance, ongoing support to brokers throughout the loan process and a clear, easy-to-understand policy.”
Bluestone Home Loans head of specialised distribution Richard Chesworth added: “Education will be at the heart of the support we provide to brokers so that they can leverage our experience to diversify their businesses.
“In addition, support will be provided at every step of the process so brokers can feel confident their clients’ compliance needs are met – which is often the biggest challenge in SMSF lending.”
