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Mondus Capital aims to help prospective buyers with the upfront cost of saving for a home while also promising returns to investors.
Through the new loan product the firm plans to launch, customers can access loans of up to 25 per cent of the value of the property they wish to buy in return for granting Mondus Capital a 40 per cent share of any increase in the value of the property.
The minimum term is set to be five years, following which home owners may either refinance or sell their properties, with Mondus receiving its share at that point in time.
The firm sees it as a way to “bridge the growing gap” of property prices outpacing income growth.
“Home ownership should be within reach of all Australians, and Mondus is committed to making this a reality" said Nir Davidson, chief executive and founder of Mondus.
“Our shared equity model not only enables buyers to enter the property market sooner but also allows them to benefit from the increase in property value while paying off their home.”
Calling it a “balanced business model that addresses the key risks of a lending business,” the company said it would be focused on lending against quality properties in high-growth areas of capital cities, while exercising strict credit controls and a rigorous borrower selection process.
A first for Australian deposit lending businesses, the product is still in its nascent stages.
Mondus is currently laying the groundwork to raise capital on an equity crowdfunding platform, which will be used to establish a digital platform and initiate lending contracts for up to four properties. Further talks with institutional lenders to secure an additional $50 million would enable the firm to scale operations to a further 100 properties.
Mondus is offering ordinary shares to those who partake in the crowdfunding round, which Davidson described as “a great opportunity for investors to back a local company that could improve access to home ownership to thousands of Australians at a time when politicians can’t figure out a nationwide solution to the housing affordability crisis”.
