GenStar Finance

14/07/2026

🏠 Important SMSF Update
Residential Property Borrowing Changes Now Confirmed

Dear Valued Client,

In June, I wrote to you regarding the Federal Government's proposed changes to Self-Managed Super Fund (SMSF) borrowing for residential property.

Since then, I've had a number of clients contact me with questions about how these changes may affect their future investment plans. As the legislation has now been passed, I wanted to provide everyone with a brief update.

📢 What Has Changed?
From 10 August 2026, Self-Managed Super Funds (SMSFs) will generally no longer be able to enter into a new Limited Recourse Borrowing Arrangement (LRBA) to purchase a residential investment property.

For many Australians, an LRBA has been the primary way to borrow through their SMSF to invest in residential property. This legislative change will significantly impact future SMSF residential property purchases where borrowing is required.

✅ What Hasn't Changed?
There has been some confusion surrounding these changes, so I'd like to clarify a few important points.

✔ Existing residential property LRBAs are expected to continue under the current rules (commonly referred to as grandfathering).
✔ SMSFs can still purchase residential property using available funds within the SMSF (without borrowings), provided all superannuation laws and investment rules are met.
✔ These changes do not affect residential properties already owned by an SMSF without borrowings.
✔ Borrowing through an SMSF may still be available for Business Real Property (BRP), subject to the relevant superannuation rules.
💡 What Is Business Real Property (BRP)?
One important clarification is that the legislation focuses on whether a property qualifies as Business Real Property, rather than simply whether it is classified as residential or commercial.

In other words, eligibility depends on how the property is used, not just what type of property it is.

Many commercial properties (such as warehouses, factories, offices and medical suites) may qualify as Business Real Property. However, not all commercial properties will qualify, particularly if they include a residential or private-use component.

Likewise, in limited circumstances, a property that is technically classified as residential may qualify if it is wholly and exclusively used for business purposes.

As each situation is different, it's important to obtain advice based on your individual circumstances.

💡 Myth vs Fact
❌ Myth: SMSFs can no longer invest in property.

✅ Fact: SMSFs can still invest in both residential and commercial property. The key change relates to borrowing to purchase new residential property through an LRBA.

🏡 Thinking About Purchasing Through Your SMSF?
If purchasing a residential investment property through your SMSF has been part of your long-term investment strategy, I encourage you to seek advice as soon as possible to understand how these legislative changes may affect your options and the associated timeframes.

With many investors expected to act before the changes take effect, lenders, solicitors and other professionals involved in SMSF lending are likely to experience increased demand. As a result, loan approvals and settlement timeframes may take longer than usual.

Importantly, if you exchange contracts before 10 August 2026, your arrangement is expected to be protected — even if settlement occurs after that date. This means clients who are already well progressed may still have a viable path forward, provided contracts are in place before the deadline.

Even if you're only in the early stages of considering an SMSF property purchase, it's worthwhile having a conversation now so you understand how these changes may affect your future plans.

🤝 How I Can Help
SMSF lending is a specialised area and often involves collaboration between your:

Mortgage Broker
Accountant
Financial Adviser
Solicitor
to ensure the lending structure is appropriate and all legal, taxation and lending requirements are met.

If you'd like to discuss your options or understand whether these changes may affect your future plans, I'd be more than happy to assist and work alongside your professional advisers.

At GenStar Finance, we understand the unique needs and aspirations of property investors, and we’re dedicated to providing tailored financing solutions to help you achieve your investment goals.

26/06/2026

What a great evening at the Broker Innovation Awards (BIA26) on Wednesday night!

I was fortunate to attend as a guest of Bridgit and had a wonderful time connecting with fellow brokers, lenders and BDMs, celebrating industry achievements, and seeing the innovation taking place across the mortgage sector.

It was also a pleasant surprise to run into a former colleague from my Macquarie days who I hadn't seen in quite some time.

Events like these are a great reminder of how valuable industry relationships are and how important it is to continue learning, growing and supporting one another.

Thank you to Bridgit for the invitation, and congratulations to all the finalists and winners who were recognised on the night.

23/06/2026

Hi everyone,

I wanted to share an important update for anyone considering purchasing an investment property through a Self-Managed Super Fund (SMSF).

The Federal Government has announced proposed changes that may restrict the ability of SMSFs to borrow for future residential property purchases using a Limited Recourse Borrowing Arrangement (LRBA), which is the structure currently used for SMSF property loans.

At this stage:

• SMSF residential lending remains available.
• Existing SMSF property loans are expected to be unaffected.
• The proposed changes have not yet been fully implemented, and further details are still being released.
• The timing, commencement date and exact impact on future SMSF property purchases are yet to be confirmed.

If you have been considering purchasing a residential investment property through your SMSF, it may be worthwhile exploring your options sooner rather than later while the current rules remain in place.

As every person's circumstances are different, it is important to obtain independent financial, taxation and legal advice before making any decisions regarding an SMSF or property investment.

If you would like to discuss SMSF lending options or understand how these proposed changes may affect your plans, please feel free to get in touch.

Send a message to learn more

06/06/2026

Hello everyone,

It's the long weekend and I thought I'd put together some light reading that you can read at your own pace between family catch-ups, BBQs and convincing yourself you'll finally tackle that never-ending to-do list. 😄

Since becoming a mortgage broker, one of the questions I've been asked regularly is:

❓ How much do you charge?
❓ How do mortgage brokers get paid?
❓ Why would a broker ever charge a fee?
❓ Does it matter if I refinance shortly after settlement?

To be honest, before I entered the mortgage broking industry, I didn't fully understand how brokers got paid either. I just knew that somehow the banks paid them!

So I thought I'd lift the curtain a little and explain what happens behind the scenes.

1️⃣ Upfront Commission

When a loan settles, the lender pays the broker an upfront commission based on the loan amount.

However, what many people don't realise is that the amount disclosed in the Statement of Credit Assistance (SOCA) is not necessarily the amount the broker receives.

In many cases, the commission is first paid to the aggregator, and a portion is then paid to the broker.

2️⃣ Trail Commission

Brokers may also receive a small ongoing trail commission while the loan remains active.

This helps support the ongoing service brokers provide long after settlement, including:

✅ Answering questions
✅ Loan reviews
✅ Restructuring guidance
✅ Future lending guidance

For many clients, the relationship with their broker continues for years after the original loan settles.

🤔 What Many People Don't Realise

There are many situations where a broker may spend weeks or even months helping a client and ultimately receive no payment at all.

Examples include:
• Pre-approvals that don't proceed
• Clients who decide not to purchase
• Multiple lending scenarios being explored
• Applications that are withdrawn
• Significant research that never results in a settlement

Many brokers are happy to do this because this helps clients make informed decisions.

🔄 The Clawback Most Borrowers Don't Know About

If a loan is refinanced or repaid within the first two years, lenders can reclaim some or all of the broker's upfront commission.

This is known as a clawback.

For example:

• Refinance within the first 12 months = often 100% clawback
• Refinance after 12 months = some lenders may reduce the amount reclaimable
Every lender has slightly different rules.

💰 The Offset Example

This one surprises a lot of people.

Many lenders pay commission based on the net loan balance after offset funds are taken into account.

For example:
Loan: $900,000
Offset Balance: $400,000
The broker may only be paid based on the remaining $500,000.

And before anyone feels bad, please don't! 😄

If putting money into your offset saves you interest, that's exactly what you should be doing. Your financial outcome should always come first.

📋 Why Some Brokers Charge Fees

Not every broker charges fees.

However, some scenarios can require significantly more time, research and complexity than a standard home loan.

Examples may include:
• SMSF lending
• Trust lending
• Complex structures
• Larger property portfolios
• Multiple strategy changes during the application process

In these situations, a broker may provide a Credit Quote outlining any applicable fees before proceeding.

👀 The Part Clients Don't See

A mortgage application is much more than completing forms.

Behind the scenes, brokers are required to:
• Understand your goals and objectives
• Assess borrowing capacity across different lenders
• Review lender policies
• Compare products
• Meet compliance requirements
• Satisfy Best Interests Duty (BID) obligations
• Prepare submissions
• Liaise with lenders
• Manage approval conditions from lenders
• Coordinate settlement

There can be many hours of work involved before an application is ever approved.

Another thing many people don't realise is that mortgage brokers are required to comply with Best Interests Duty (BID), meaning we must act in our clients' best interests when providing credit assistance.

The purpose of this post is simply to provide a little transparency around what happens behind the scenes.

Most brokers genuinely want to help people achieve their goals, whether that's buying a first home, upgrading, investing, refinancing or building long-term wealth.

If you find a broker you trust, communication and transparency go a long way. The best outcomes often come from working together over the long term rather than treating each loan as a one-off transaction.

If there's a finance or property topic you'd like me to cover in a future post, please let me know. Chances are if you're wondering about it, someone else is too. 😊

💭 Berna's Finance Thought For The Long Weekend

"Behind every settled loan is usually a story most people never see, months of conversations, planning, problem-solving and persistence. The settlement is often just the final chapter."

Have a wonderful long weekend everyone and stay safe!

A finance broking firm in the Hills district of Sydney. Over 20yrs of experience in banking, Berna brings a wealth of expertise in consumer/commercial loans and asset finance. An accredited mortgage broker with the FBAA and a licensed buyers agent.

20/05/2026

Stepping outside your comfort zone is where growth happens 🌱

Today’s ANZ Women in Commercial Broking event was a reminder that there’s always something new to learn, new people to meet, and new opportunities to explore.

So good to connect with some amazing women in the industry today 💝🌹🌸💜

14/05/2026

BRIDGING LOAN….

Great catching up with the BDM from Bridgit while working through a bridging solution for a client.

One of the biggest challenges in property transactions can be when settlement dates don’t align between buying and selling. In this case, we’re exploring bridging finance options to help the client move forward with confidence while avoiding unnecessary pressure around timing.

Every scenario is different, and having strong lender relationships and solution-focused conversations can make a real difference for clients navigating complex situations.

Appreciate the support and collaboration as we work towards a positive outcome for the clients.

26/02/2026

Great afternoon at the 360MMS Lunch & Learn today!

Really valuable session covering their range of solutions including;
- build now pay later construction loans,
- SMSF lending,
- asset finance,
- structured and specialist lending,
- and more……

Always good to stay across different credit policies and product niches that can help us support more clients.

The lunch was top notch as well 👌

Also had a last-minute catch-up with ShaMichael Chen from Judo Bank. Great to reconnect and talk about what’s happening in the commercial market.…

Some snapshot of the event ….

24/09/2025

🚨 Big Changes Coming: First Home Guarantee Scheme Update (From 1 October 2025) 🏡

If you’re a first home buyer, or haven’t owned property in the last 10 years, you’ll want to read this 👇

Starting 1 October 2025, major changes to the First Home Guarantee Scheme will make it much easier for eligible buyers to get into the property market, even with a smaller deposit.

What’s changing?

✅ Buy with just a 5% deposit
✅ Pay no Lenders Mortgage Insurance (LMI)
✅ No income cap — even high-income earners can qualify
✅ Higher property price caps (e.g. up to $1.5M in metro NSW)
✅ Unlimited places — no cap on how many people can apply
✅ Still for owner-occupied homes only
✅ Available to first home buyers OR those who haven’t owned property in the past 10 years

What does this mean for you?

If you’ve been saving for years to hit a 20% deposit, this could let you buy much sooner, without the extra cost of LMI.

Whether you're on a high income, buying solo, or with a partner, these changes open the door for many who previously wouldn’t have qualified.

✅ Note: The property must be owner-occupied and fall within the scheme’s price cap for your area. Credit assessment still applies.

💬 Let me know if you would like me to check your eligibility or see how much you could borrow. I can help you understand what’s possible, run the numbers, and guide you through the next steps.

21/08/2025

💬 “Trustworthy, honest, knowledgeable, and made the whole process seamless…....”

Just a snippet from a glowing review I received today 🙌

I take great pride in guiding my clients every step of the way, and it’s even better when they’re as organised and easy to work with as this client was!

Thank you for the lovely review and I’m looking forward to helping you with your future investment property! 🏡💼