Financial services firms Calliva Group and Firstfolio have joined forces to launch a new mortgage loan product allowing self-managed superannuation funds (SMSF) to borrow to invest in commercial property.
Calliva has developed the product called SuperAccess that, under the new arrangement, will be distributed by the Firstfolio network. The network includes over 800 financial service professionals, including financial planners, accountants and mortgage brokers, along with Calliva's own group of advisers.
Royal Bank of Scotland has provided the warehouse funding for the new loans, which are non-recourse and do not require any personal guarantees from SMSF members or trustees.
Calliva believes SuperAccess is most suited to self-employed people who are looking to purchase and lease back their offices while also trying to take advantage of the tax friendly superannuation framework.
Applicants will be able to borrow up to 70 per cent of the property's value and will be constrained by a minimum loan amount of $150,000 and a maximum amount of $2 million.
The term of the loan will be for 20 years.
"Most of the 368,000 self-managed super funds in Australia, representing a combined $287 billion in assets, have until now been denied the opportunity to invest in real estate because they have not been allowed to borrow," Calliva Group chief executive Vince Scully said.
"With this restriction lifted, owners of self-managed funds can now invest in an important growth asset that will help maximise retirement income."
Calliva is intending to follow up this initial launch with a similar product aimed at facilitating SMSF geared residential property investments.
