I Love Accounting (ILA) and emoney have launched a loan product for clients interested in acquiring property via their SMSF.
Outsourced business partner services provider ILA and non-bank lender emoney stated the new Discover SMSF loan product was intended for ILA clients and would be suitable for the purchase of a range of investment-only commercial and residential properties.
The new product offers a loan-to-value ratio of up to 80 per cent, with maximum loan amounts of $1.5 million for residential properties and $3 million for commercial properties.
ILA chief executive Michael Jeffriess also noted higher amounts could be borrowed, subject to additional risk rates.
“Anything greater than [$1.5 million for residential properties and $3 million for commercial properties] has to be assessed by risk teams and may require lenders share rates across loan warehouses, which comes with slightly additional costs generally,” Jeffriess said.
As part of the partnership, emoney is expected to look after the back-office processing work, including the loan application process, collation of information and liaison with advisers, accountants and financial planners.
ILA said while it would carry out discussions with accountants and advisers around legal structures and strategies related to the fund, emoney would handle all the loan documentation required for a client.
“We are excited to partner with emoney and bring this SMSF loan product and service to market for our members. It is aimed at ILA’s core focus of partnering and providing solutions to our members that in turn allow them to focus on adding value to their clients,” Jeffriess said.
In addition, ILA said it would be working with emoney to extend a full suite of loan products to its clients beyond the initial SMSF loan offering.
ILA is a partner company of the Grant Abbott helmed businesses LightYear Docs and I Love SMSF, while emoney is an independently owned non-bank lender
Jeffriess added that all enquires regarding the loan product should be directed to ILA as emoney cannot accept direct enquires or applications in relation to ILA emoney products.