Calliva suspends superannuation loans

Specialist lender Calliva Group has been forced to suspend new applications for its superannuation fund loan, SuperAccess, after being told by its funder RBS that its facility would not be renewed.

Calliva chief executive Vince Scully said RBS, which put a $200 million warehouse in place last year, was not prepared to renew Calliva's senior facility in its current form.

He said: "The problem is that in this market it is difficult to term out anything that is not a AAA-rated security."

Scully said he was in discussions with a couple of other funders and hoped to announce a new facility soon.

He said there was no impact for existing borrowers and approved loans would be processed over the next couple of weeks.

Calliva is one of the pioneers of a new market, offering loans to the trustees of self-managed super funds.

Super loans have been developed by Calliva, Seiza Capital, Westpac and Macquarie Bank following a change of superannuation law last year that opened the door for borrowing by super funds, which had up to that point been limited to gearing through instalment warrants and geared funds.

Scully said the market was starting to gather momentum. Calliva has signed up 230 introducers - loan brokers, accountants and financial planners.

Scully said: "We have just got to the stage where brokers have stopped asking us how the product works and started asking how ours is different from other providers.

"We are confident of the strengths and continuing demand for our product. We expect to be in a position to accept applications again shortly, with an enhanced product offer."