ING Direct has thrown its support behind the emerging self-managed superannuation fund loan market. The bank is funding a new group called PowerSuper, which has launched a property loan for super funds, the PowerSuper Warrant. PowerSuper will lend trustees of self managed funds up to $2 million, with a maximum LVR of 70 per cent, for investment in residential property. The warrant is structured as a five-year interest only loan. After five years the borrower can roll over for another five-year interest only term or convert the loan to a 25 year P&I loan. The PowerSuper Warrant is being sold through financial planners and accountants, rather than through loan brokers. PowerSuper has already signed up a number of SMSF advisory groups as distributors, including Dixon Advisory, Smartsuper and Total Super. Mortgage management has been outsourced to Firstfolio. PowerSuper head of distribution Jo Parkinson said the group had done abut $2 million of loans in the month after the product launch in October. Parkinson said: "This product will have a slow build. Accountants and advisers want to be clear about what they are getting their clients into. And it is a more complex type of loan product, requiring the establishment of a security trust." Parkinson said the funding arrangement with ING Direct was "open-ended". The restriction on use of the finance for residential property investment only fitted ING Direct's lending profile. The maximum LVR of 70 per cent might deter some investors but Parkinson said lower LVRs were the norm in the super loan market. The super lending market, which was kicked off after changes to superannuation legislation last year, has suffered a few setbacks. A couple of specialist lenders, Seiza Capital and Calliva, withdrew from the market after their funding dried up. The big banks are in the market but have maintained a low profile. Industry sources say National Australia Bank has the biggest market share. Parkinson is a former marketing director of Seiza Capital. PowerSuper director Damien Palmer is a financial planner who has held executive positions at self managed fund administration companies Super Outsource and Multiport.