Why diversifying makes you a better broker

“If you get into the commercial space, it makes you a better broker because you are learning the technical stuff. And that can help you with your resi deals. It helps you with your thinking,” he said.

Pham explained that branching out into commercial lending gives brokers the opportunity to improve their knowledge base.

“Your resi is very black and white… Once you actually get an understanding of how commercial works, it’s more grey. Things that traditionally don’t work in the resi space could actually work in commercial,” Pham said.

“And you never know, there could be one day where this deal comes across your table and you’ll know how to do it.”

Pham, who was formerly a financial planner, said commercial broking can also be lucrative.

“Commercial deals can be bigger. So it could potentially be more income for them [brokers], and it unlocks a different sort of clientele,” Pham said.

While the commercial side of broking is not as mature as residential, it is growing strongly, according to the Mortgage and Finance Association of Australia (MFAA).

Earlier this year, the industry body revealed that in the six months to September 2024, there was a 24 per cent year-on-year rise in the number of mortgage brokers writing commercial loans.

Likewise, commercial mortgages were written by 37 per cent of brokers in the year to April 2025, according to market research firm Agile Market Intelligence, with an additional 28 per cent planning to start offering them over the next 12 months.

“I see reports that more and more brokers are becoming commercial brokers, and that shows a level of skill increase… It’s showing that the knowledge [and] the skill set of brokers is increasing,” he said.

How is broking evolving?

Asked how the traditional role of mortgage brokers was changing, particularly in dealings with property investors, Pham said: “It’s not just about getting a loan anymore”, adding that tax and portfolio implications also needed consideration.

“We deal with a lot of investors in this business and I can tell you they’re becoming more savvy, more technical. They understand structures, [they] speak to their accountants [and their] financial planners now.

“If you [the clients] speak to a broker who’s switched on, I guarantee they will be more inclined to go with you than a broker in the traditional sense who doesn’t [look beyond home loans] and know much about structure or tax.”

Looking at the changing skill set needed for broking, Pham added: “I think over the next five years, you will get brokers that are more savvy or have more technical know-how to actually understand the structures, tax side of things…

“Knowing these little extra bits can make or break a deal because another broker who doesn’t question them will put the figures in and just move on. But if you can tax deduct that loan, use a bit of rent from the investment, or do any income from the shares, that might now be a deal,” Pham said.

Much like Pham, National Australia Bank (NAB) executive for commercial broking and equipment finance sales, Chris Thomas, told The Adviser last week that he had witnessed the standard of commercial broking getting stronger in recent years.

‘Don’t chase the dollars’

When asked about what he believes sets his brokerage apart from rivals, Pham said Rethink Financing aims to take a more holistic and long-term view to helping clients.

He added that he encouraged his staff to think beyond client interactions being solely transactional.

“I just said to all my guys, don’t chase the dollars. Just focus on every client that gets put in front of you. Take the time to talk to them, understand what their needs are,” Pham said.

“[If you do that] I guarantee you those clients will come back, and not only come back, but refer their family and friends.”

[Related: Shift to commercial drives stronger broker standards]