New finance products for self-employed investors
Self-employed investors looking for financing may benefit under a new specialised suite of loan products from National Finance Club (NFC).
The NFC alt-doc loan targets self-employed business owners wanting to borrow up to $1.25 million. The loan provides investors with a quick settlement period.
The new products have been created to deal with the continued softness in the residential market, according to Firstfolio’s executive general manager for retail distribution Andrew Clouston.
“We have designed these products carefully for niche investor markets,” Mr Clouston said.
“There is growing demand among self-employed borrowers for hassle-free loan products with streamlined verification and settlement processes,” Mr Clouston said.
The new products include an alternative documentation loan and a new loan product for Self-Managed Superannuation Funds (SMSFs).
In the SMSF space, the lifting of restrictions on funds making geared investments has created demand for tailored investment loan products to support asset purchases within the SMSF environment.
NFC’s SMSF loan product is structured to meet the compliance requirements of this lending category, while giving self-managed super fund members maximum flexibility in building a conservatively geared asset portfolio. In piloting the SMSF loan product, NFC has recorded strong interest and uptake.
“Gearing can be a highly effective way to boost long-term returns from an SMSF strategy, and it opens up new asset classes, particularly real property, to self-managed superannuants. Our new SMSF loan offers a complete, simplified package for brokers with clients in this space,” Mr Clouston said.