ThinCats chief executive Sunil Aranha says the partnership will allow the 350 lenders on the platform to “gain exposure to both property and new loan opportunities”.
“Lenders on our platform are now providing more than $1 million in loans per month and DomaCom will lift our lending volumes even further,” Mr Aranha said.
Loans made through the partnership will also be relatively low risk, according to DomaCom chief executive Arthur Naoumidis who said the loans must be positively geared and have a loan to value ratio of no more than 50 per cent.
“The default rate for the fund borrowing the money is a low 3.5 per cent above the ANZ overnight cash rate. This currently equates to 5.25 per cent p.a. As the cost of the facility is 0.5 per cent of the loan amount, lenders will currently receive 4.75 per cen. p.a. – an attractive return in this low rate environment,” he added.
Mr Aranha said the partnership is an innovative approach to investing, offering new options for investors looking for exposure to the property market.
“This is a wonderful illustration of true disruption with a crowdfunding platform and peer-to-peer lending platform working together to enable SMSFs to benefit from gains associated with property ownership whilst earning attractive fixed income returns,” he said.