Sydney-based FinTech start-up, MyBrix, has received its first applications from property owners looking to sell their mortgage debt to investors.
Under the platform, home owners sell their mortgage debt to investors to pay off, in return for no interest and no repayments.
When the home sells, the homeowner and the investor share in the capital growth.
The maximum funding time is 10 years, after which the property owner has to sell or refinance.
MyBrix Founder and Chief Executive Officer Brian Stevens said the first properties available for investment include a property in Cordeaux Heights, NSW, with a market value of $1.4 million and which is seeking $380,000 in funding.
A second property in Macquarie Links, NSW, has been independently valued at $1.52 million and is looking for $825,000 in funding.
In August last year, just prior to MyBrix’s launch, Mr Stevens told Elite Agent the platform worked by dividing the value of every property into 10,000 ‘brix’.
So, for a $1 million property, each brix is worth $100 and a homeowner can elect how many of them to sell to investors.
“With interest rates likely to remain at current levels until the end of the year, and continuing cost of living pressures, property owners are looking for ways to lessen mortgage stress, and escape mortgage prison,” Mr Stevens said.
“The MyBrix model is receiving strong interest from home owners and investors, who are attracted to this innovative way to finance and invest in property.”
In August, Mr Stevens told Elite Agent, property owners would no longer fear mortgage cliffs or be forced to sell due to jumps in mortgage repayments.
He said credit assessment and serviceability would no longer apply either.
The quality of the property and its growth potential now become the determining factors to access to funding.
“We’re turning things on their head,” Mr Stevens said.
“Normally the bank looks at the people behind it and goes, ‘Are you good enough? What’s your credit history?’
“We’re turning that around the other way and saying, ‘What’s the quality of the property? What’s the property going to do? What’s the growth aspects of the property?’
“We’ve created an algorithm called the Investment Attractiveness Rating that uses 2000 data points to give every property a score out of 1000, to give guidance to investors on where the properties will potentially give them the best return over a longer term.”