Mortgage Ezy has announced the release of a self-managed super fund loan. The mortgage manager has stated its SMSF loan product will be available to brokers "within days," and will carry a rate below 8%. The product will be available with a maximum LVR of 70%. Mortgage Ezy head of sales and marketing Chris Wisbey explained the structure of the product, telling Australian BrokerNews the SMSF loan enabled property investors to expand their portfolio.

"A SMSF loan enables the borrower to purchase investment property using their superannuation as the basis of a deposit. The borrower chooses the individual property they want to buy which allows greater control of their own portfolio while opening up legitimate investment gearing opportunities, tax benefits and flexible estate planning," he said.

Wisbey predicted that investors would become increasingly active in the market as product options expanded and property values continued to be soft.

"Our research points to strong indications that SMSF borrowers are optimistic about property investment particularly here in Australia as a measure of diversification and to minimise exposure. Current property prices in metro markets are very attractive so it would make sense to see strong activity in investment purchases through these vehicles in particular," Wisbey commented.

For brokers, Wisbey said the product offers a way to diversify the client base they can appeal to. He commented that Mortgage Ezy would continue to respond to brokers' desires for a diverse range of products.

"The bottom line is our brokers are really good at identifying niches and recommending the best methods and means to meet those markets. Mortgage Ezy is really good at wholesale and creating solutions to fit particular markets. Consequently on the question of diversification we have become really good at listening then delivering a solution that meets in the middle," he said.

The mortgage manager also recently announced that, in spite of the impending DEF ban, it would not introduce clawbacks. Wisbey said this, along with further product offerings, has generated enthusiasm among brokers.

"There is a real surge of energy amongst our business partners, and optimism levels are high because we're actually delivering on the stuff we said we would, like no clawbacks post-July with great rates combined with fair and reasonable commissions," Wisbey said.

More from IBT Real Estate:
Newsletter: To receive real estate update, sign up here