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Under the lender’s new SMSF Fast Refi pathway, eligible refinance applications can be assessed using a borrower’s demonstrated repayment history instead of a serviceability calculator, provided the refinance results in lower monthly repayments.
La Trobe said that the changes are aimed at reducing documentation requirements, simplifying broker submissions, and speeding up turnaround times for eligible refinance applications.
The update comes as the SMSF lending market continues to evolve following recent legislative changes that have limited new residential SMSF borrowing.
The streamlined pathway is available for dollar-for-dollar refinances, plus eligible exit and establishment costs, up to a maximum loan-to-value ratio (LVR) of 80 per cent. It applies to both residential and commercial properties nationwide and is available to corporate trustee SMSFs only.
To be eligible, borrowers must have held their existing loan with an approved lender for at least 12 months, demonstrate a strong repayment history, and be refinancing to a loan with lower monthly repayments. Loan terms of up to 30 years, or the borrower’s existing loan term, are available.
La Trobe Financial chief lending officer Cory Bannister said the changes recognised that many SMSF borrowers had a proven track record of meeting their loan commitments, but were facing fewer refinancing options.
“Many SMSF borrowers have a strong track record of meeting their loan commitments but are finding their refinancing options increasingly limited,” Bannister said.
“SMSF Fast Refi recognises that demonstrated repayment conduct is a powerful indicator of affordability. By simplifying the assessment process for eligible borrowers, we’re helping brokers deliver faster, more efficient refinancing solutions that can improve their clients’ monthly cash flow.”
Bannister said the lender developed the refinance pathway in response to broker feedback, with brokers seeking simpler options for existing SMSF borrowers looking to access more competitive repayment structures.
“Brokers have told us they need practical solutions for existing SMSF borrowers who are managing their loans well but want access to more competitive repayment structures,” he said.
“SMSF Fast Refi provides a straightforward pathway to help achieve that.”
[Related: The latest lender changes at a glance]
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