Pepper Money has updated its SMSF lending offering as the sector marks 18 years, responding directly to broker feedback and evolving market needs.
The non-bank’s "SMSF Residential Full Doc Loans" now offer up to $1 million at a 90% loan-to-value ratio, without the need for lender mortgage insurance (LMI), or a lenders protection fee (LPF). This means clients can access higher loan amounts, even with a smaller SMSF balance.
“For SMSF investors, this is a big shift," said Barry Saoud, chief executive, mortgages and commercial at Pepper Money. "They can now purchase with just a 10% deposit and no mortgage insurance, potentially saving their super fund tens of thousands.
"Many SMSF clients have been held back by minimum deposit requirements, or high insurance costs," he said. "Pepper Money’s new 90% LVR option removes that barrier. We're opening doors for clients who may have been locked out before."
Saoud added that the updated loans are in response to growing investor appetite – SMSF loan volumes are up more than 50% in 2025 – along with brokers increasingly calling for more options in this space.
"And the momentum is still building," Saoud said. "Brokers are telling us they need more flexible options to meet growing demand. And we’re listening.
"As the lending landscape shifts, we’re focused on helping brokers say 'yes' to more clients," he continued. "Whether it’s an investor using their SMSF to buy property, or a business owner needing a flexible solution, we’re raising the bar so brokers can grow their business with confidence.”
The SMSF lending sector – a form of specialized lending that enables self-managed super funds to use limited recourse borrowing arrangements (LRBAs) to purchase investment assets – turned 18 this month. Nearly two decades on, SMSF lending has kept pace with the growing popularity of self-managed super funds.
SMSF users – and those looking to tap into SMSF lending – gain greater flexibility and control over their superannuation. Many trustees also leverage SMSF loans to acquire assets like property.
This growth has unlocked new opportunities, not just for lenders, but also for brokers, who play a crucial role in navigating the SMSF lending landscape. By educating and guiding clients through the complexities of SMSF lending structures and LRBAs, brokers help borrowers unlock access to tailored loan products that might otherwise seem out of reach. Additionally, brokers serve as vital feedback channels to lenders, driving innovation and product development that better meets client needs. In doing so, brokers not only grow their own business but also help expand the overall SMSF lending market, positioning themselves as indispensable partners in a rapidly evolving sector.
Pepper Money, meanwhile, celebrated its 25th anniversary this year. The non-bank – which now manages more than $20 billion in assets and has served more than half a million customers since its inception – celebrated with an all-out bash at Sydney's Machine Hall.
Mario Rehayem, Pepper's chief executive officer, told Australian Broker that the firm is now aiming for one million customers by 2029.
"And we've got a number of products that we're looking to introduce into the market that we're keeping a little bit tight lipped on," Rehayem said. "But there's some really interesting and very quirky products that will be rolled out."
