NEW FIN-TECH MARKETPLACE TARGETS BOOMING SMSF SECTOR

In a first for Australia’s rapidly growing Self-Managed Super Fund (SMSF)  sector, property finance specialist Blue Crane Capital has launched SMSFr8 – an innovative finance marketplace where SMSF borrowers can find the best  interest rate and obtain funding. 

The online SMSFr8 platform is free for users and is the first to provide a complete analysis and comparison of the highly specialised SMSF lending  market for both commercial and residential property, covering banks, non banks and private lenders.  

SMSFr8 provides an immediate estimate of the best market rate and the  ability to start the borrowing process. 

According to Blue Crane Capital, with nearly 600,000 SMSFs in Australia and  some $822 billion in assets – SMSFs now account for around 25 per cent of the  superannuation sector yet remain under-represented in rate comparison  tools. 

The innovative new fin-tech delivers SMSF borrowers the best interest rate available based on a sophisticated calculation, with the backend supported  by raw data from SMSFr8 is powered by data collated from over five years of  specialist experience arranging financing solutions for Blue Crane Capital’s  clients. Blue Crane Capital settles over $300 million in transactions per year. 

In addition, SMSFr8 addresses unique aspects of the SMSF sector, considering the complexity of SMSF loans and increasing competition  amongst lenders as non-banks re-enter SMSF lending. 

SMSFs need to answer a short series of questions regarding the type of loan and the parameters around their needs to feed into SMSFr8’s calculation. 

According to Blue Crane Capital, SMSFr8 was created in direct response to  the burgeoning SMSF sector that has witnessed rapid escalation since  changes to the Superannuation Industry (Supervision) Act (SIS Act) in July  2021 that saw trustee numbers increase from four to six.  

“We built SMSFr8 to empower SMSF borrowers and deliver enhanced  transparency, particularly around more complex commercial lending. Now,  borrowers can instantly assess their rate to ensure it’s competitive,” said Chris  Hall, Managing Director of Blue Crane Capital.

“The timing is perfect for this platform. We’ve seen a significant uptake in  commercial SMSF lending spurred by the SIS Act changes with business  owners leveraging tax incentives and opting to buy their commercial  premises and continue to rent it from their SMSF vehicle,” he said. 

This trend is backed by data from the Australian Taxation Office (ATO), with its  recent quarterly SMSF report revealing more SMSFs are taking on debt within their portfolios with a $3.5 billion rise in limited recourse borrowing  arrangements in the first three months of 2021. 

The ATO’s report showed more than 6,000 new SMSFs were established in the  first three months of 2021 – representing about 10 per cent of the entire  sector. Total estimated SMSF assets increased by 3% over the quarter to $787  billion, and while the most common asset types remain shares and cash – the  biggest increase has been in the property sector.  

According to the report, the total value of real residential property held by  SMSFs grew by 6.36% ($2.64 billion) to more than $44.1 billion over the quarter,  while limited recourse borrowing arrangements (LRBA) also rose by 6.36%  ($3.55 billion) to $59.4 billion. 

Hall also notes the growing presence of non-bank lenders in the SMSF space  as further evidence of the need for SMSFs to have a convenient rate  comparison marketplace. 

“Unless SMSFs are considering the complete lender market, they run the risk of  paying too much interest – SMSFr8 is a disruptor here and will deliver  complete rate transparency to SMSF borrowers,” Hall said. 

Blue Crane Capital is the sister company of leading commercial property  finance originator Stamford Capital Australia, who late last year released  comr8, a commercial property finance marketplace enabling users to  calculate what their interest rate could be. 

Since its launch, thousands of scenarios have been run through comr8 with  users saying they get real value from the market intelligence. 

Incapsica, the developers who built SMSFr8, say the main criteria that drove  its design are speed and usability, with the need for a borrower to input information and receive an instant rate estimate easily. 

“We went with a minimal design and execution, allowing the user to focus on  each question at hand. Meanwhile, we needed a backend that did the hard  work: calculating each answer into the equation, but also allowing for  formulations to be adjusted based on industry trends and fluctuations.

“Another consideration was mobile. We wanted SMSFr8 to be responsive and  easily accessible – in the pockets of borrowers everywhere,” said Baz Brown,  Director at Incapsica. 

The SMSFr8 marketplace is set to appeal to a diverse range of commercial  and residential borrowers seeking to ensure they access competitive rates. All  types of commercial property loans are covered, including construction,  investment, land bank and residual stock. 

“Regardless of what stage borrowers are at in the lending process – whether  it’s a quick sanity check on an existing rate or they are curious to find the best  interest rate available – SMSFr8 delivers peace of mind and greater  bargaining power,” Hall said. 


Media information: 

Karen Gampenov or Tessa Pelle 

The PR Partnership

Ph: 0411 795 131 karen@prpartnership.com.au or

Ph: 0431 713 479 tessa@prpartnership.com.au


About Blue Crane Capital 

Blue Crane Capital are property finance specialists with the professional capability  and experience to navigate complex residential, commercial property and  construction transactions. It has access to funding from the major banks, second-tier,  and non-bank lenders and its clients include property developers, residential and  commercial property owners and investors as well as SMSFs. 

Since early 2017, Blue Crane Capital has a proven track record in providing  appropriate financing solutions for their clients. Last year alone, Blue Crane Capital  arranged over $300 million in loan settlements across 175 residential, commercial  and construction deals. 

Blue Crane Capital is the sister company of Stamford Capital Australia, a leading  commercial property finance originator and fund manager. 

About Stamford Capital Australia 

Stamford Capital Australia is one of Australia’s leading independent arrangers of  commercial property finance. With unrivalled market knowledge and capital  partnerships from private investors to ASX-listed companies, Stamford Capital  provides developers and investors with access to a broad range of financing  options, and advice to ensure their transaction is successful.

Upcoming Events
  1. Finnies 2022

    June 23
  2. Intersekt 2022

    September 7 - September 8
Videos

Ep 2: Fintechs Acceleration of Growth Since COVID

Ep 1: The Evolution of Payments

Scaling Product Globally

Podcasts

Lee Hatton – Afterpay: FinTech Australia Podcast

Anthony Jones – Visa AUS/NZ

Tim Cameron – TransferWise