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.
Karen Gampenov or Tessa Pelle
The PR Partnership
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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.