Lender has updated its serviceability process to ease the path for existing SMSF borrowers seeking lower repayments
La Trobe Financial has revised its serviceability assessment framework to accommodate SMSF Fast Refi, a streamlined refinancing option for existing self-managed super fund borrowers.
The move follows legislative reforms that have restricted new residential SMSF borrowing, prompting many existing borrowers to review their lending arrangements.
Under the updated process, eligible refinance applications can be assessed using the borrower's demonstrated repayment history rather than a traditional serviceability calculator, provided strong repayment conduct can be evidenced and the proposed refinance results in a lower repayment obligation. The pathway is intended to reduce documentation requirements, simplify submissions and shorten turnaround times.
"Many SMSF borrowers have a strong track record of meeting their loan commitments but are finding their refinancing options increasingly limited," said Cory Bannister (pictured top), chief lending officer at La Trobe Financial. "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.
"Our focus is on removing unnecessary complexity while maintaining prudent lending standards. This initiative gives brokers another practical tool to support SMSF clients seeking a better lending outcome."
The product is available for dollar-for-dollar refinances plus eligible exit and establishment costs, with loans capped at 80% LVR. It applies to both residential and commercial securities across all Australian locations. Borrowers must demonstrate that their new monthly repayment is lower than their current commitment. Loan terms of up to 30 years are available, or borrowers may retain their existing term. The product is restricted to corporate trustee SMSF borrowers whose existing loans have been held with an approved lender for at least 12 months with a satisfactory repayment history.
"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," Bannister said. "SMSF Fast Refi provides a straightforward pathway to help achieve that."
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