Demand for mortgage brokers to participate in self-managed superannuation fund (SMSF) limited recourse borrowing arrangements (LRBAs) has prompted the Australian First Mortgage (AFM) and SuperShift Australia to form an alliance.
Through the alliance, mortgage brokers will be able to access the AFM SuperShift product and offer clients the full start to end SMSF process needed to be followed to purchase property and borrow under an limited recourse, AFM and SuperShift Australia said in a joint company statement.
“We have teamed up with AFM – as they offer an excellent LRBA product and their rates for these types of loans are often the lowest of any funder,” SuperShift Australia principal and SMSF specialist advisor Nic Ellis said.
“They have built a specific offering that is tailored for our legal structures and enables the broker and the end consumer the best deal with a minimum of fuss.”
As well as meeting the demand of mortgage brokers, Ellis said the alliance also highlights the need for the industry to create a new revenue stream.
He said many traditional financial services businesses need to understand the importance of repositioning into the SMSF property and loan space.
“Whereas traditional revenue streams are dying from falling gap filling accountancy services and financial planning commissions from the [global financial crisis] and [Future of Financial Advice], the SMSF industry goes from strength to strength,” he said.
AFM and SuperShift are rolling out their offering to brokers this month.
