DomaCom chief executive Arthur Naoumidis says the varied AFS licence will allow the firm to offer peer-to-peer mortgage bond sub-funds and a fractional investment model for corporate bonds.
Mr Naoumidis said work is under way to issue a new product disclosure statement to support these new products.
“Mortgage bond sub-funds will be the first product we are planning to launch and will allow for investment loans in the DomaCom property portfolio,” he said.
The mortgage bond sub-funds will offer a yield of 3.54 per cent over the RBA cash rate, with the security of a first registered mortgage and a loan to value ratio of less than 50 per cent, according to DomaCom.
“Mortgage bonds will usually have a fixed term of five years and the current expected return of 5.04 per cent with the security of a first registered mortgage and low LVR is expected to be attractive to the SMSF market,” Mr Naoumidis said.
“DomaCom has many property bookbuilds that have been waiting for a debt solution and we expect the launch of mortgage bonds to accelerate our property bookbuilds.”