Not owning a home is the #1 driver of wealth inequality in Australia

Unlocking Australia’s hidden source of investment capital.

Saving a deposit is the largest barrier to homeownership, and the number one driver of wealth inequality. Aspiring homeowners with a deposit under 20% must pay lender’s mortgage insurance and a higher interest rate. Our Leg Up creates an attractive alternative. Borrowers pay less fees and secure lower interest rates. Investors enhance return on often inaccessible home equity.

Our solution aggregates established homeowners who have equity in their property and matches them with a pool of aspiring homeowners who have qualified for a prime mortgage but have a low deposit.

Economics

• Our product has limited competition as we offer a return on inaccessible equity.
• An investor’s equity typically remains encumbered for 2-5 years until (80% LVR) but our pooled approach and liquidity buffer can allow investors to exit earlier.
• Property price appreciation increases rate of return for this product .

Low Risk Market

• All home buyers undergo stringent loan serviceability assessments and need to be extended a prime mortgage from our partner banks to qualify.
• Australian residential mortgages amongst the safest in the world, structured as full recourse loans, with low delinquency (less than 0.9%) and foreclosure (less than 0.2%) risk by international standards.

Capital Buffer

• Proprietary risk model and product structure developed to ensure security in a downside event. For $1 guaranteed, the borrower’s fee and our provisions offer over 140% coverage and +15% buffer, able to handle the impact of +10x rise in delinquency (US peaked at 10% delinquency during GFC).
• Risk proportionately diversified across pool of borrowers, no one-to-one risk.

Investors

• Target return greater than 4% p.a. in addition to underlying real estate investment (in cash)

• Base case: Net 4.1% p.a. $1m equity pledge returns $92k in 27 months.
• Total return = 10.9% p.a., comprising 6.8% market return on property + 4.1% from Our Leg Up (in cash).

Engineered to outlast crisis simulations and protect investors

Robust suite of risk mitigating elements implemented to handle +10x increase in Borrowers’ mortgage delinquencies and property forecloses.

Ring Fenced Returns

Fee from borrowers received upfront, later paid as return to investors.

Prime & Diversified

Pledges diversified across borrowers who pass strict dual phase selection criteria.

Additional Coverage

Maintain pool of additional uncommitted pledges, boosts liquidity.

First-loss Bucket

Ability to handle the impact of a +10x rise in delinquency rates (akin to US GFC).

Find out how to bridge the wealth inequality divide by visiting our website, or Apply to Invest now!