Into people. Not just transactions
At Thinktank, we work exclusively with mortgage brokers and that focus drives our commitment to ongoing innovation. We’re always looking to develop new products and offerings that are designed to help brokers deliver the best possible experience and solutioned outcomes for their clients.
We take pride in listening to broker feedback and providing straightforward responses to the requests and suggestions we receive. This approach has driven numerous recent changes to our product offerings and we remain dedicated to adapting to this evolving market to meet the increasingly diverse needs of brokers and borrowers.
Thinktank was launched in 2006 in response to a previously unanswered demand for straightforward, set-and-forget commercial lending solutions that properly reward brokers. Our product suite was extended in 2013 to include SMSF lending; residential loan options in 2018; and continuing its tradition of innovation and diversification, launched private lending products in 2024.
For brokers looking to grow beyond the residential space, commercial finance presents a largely untapped opportunity – offering not only new revenue streams but also the chance to build stronger, longer-term relationships with a broader client base.
Around three in every four mortgages in Australia are now written by brokers according to the most recent data from the Mortgage & Finance Association of Australia (MFAA).
But increasingly, there’s a sense that there’s an opportunity to be had in commercial finance and commercial mortgages. Belinda Wright, head of partnerships & distribution at non-bank lender Thinktank, says that despite inflation, rising interest rates, and a shifting economic landscape – all of which have impacted consumer confidence and the broader business environment – commercial property lending has remained robust across various asset classes.
“While brokers currently originate over 70 per cent of residential loans, only an estimated 35–40 per cent of commercial loans are introduced by brokers, leaving a substantial gap in the market,” Wright says.
“Expanding into commercial finance not only offers brokers a pathway to scale their businesses but also enables them to serve a wider range of clients and develop deeper, long-term relationships.”
Climbing demand
When you break the lending pie down into its different components, the size of the commercial lending slice – and the potential opportunity – becomes even more evident.
In the Australian Bureau of Statistics’ (ABS) most recent Lending Indicators dataset (to December 2024), the value of new business loan commitments for property construction was up 48.4 per cent year on year to $10.7 billion.
Meanwhile, ABS data also showed the value of new business loan commitments for the purchase of property was up 24.4 per cent to $20.5 billion.
Wright says commercial lending has continued to expand across Australia but notes that growth has been uneven across different sectors and regions. “The industrial property sector has remained a standout performer, with mortgage demand continuing to rise,” Wright says.
“Exposure limits increased by 12.1 per cent over the year to June 2024, largely driven by the expansion of e-commerce and the growing need for logistics and warehouse space.”
Meanwhile, the office sector has faced ongoing challenges due to the shift towards hybrid work, resulting in more subdued lending growth. “Exposure limits for office properties rose by just 1.1 per cent over the same period, reflecting investor caution and a revaluation of office space requirements,” Wright says.
“Retail properties have [also] experienced moderate growth, with exposure limits increasing by 3.7 per cent as consumer spending patterns evolve and shopping centres adapt to changing preferences.”
Thinktank also plays heavily in the self-managed super fund (SMSF) space, where many borrowers have been eager to explore investment opportunities.
“A major and increasing trend we have observed over the past 10 years is small-business owners purchasing commercial properties through SMSF limited recourse borrowing arrangements (LRBAs), which allow an associated party – such as a member’s own business – to lease the commercial property at market rent,” Wright says.
“This arrangement makes strong financial sense, as business owners can benefit from owning their premises and building wealth, rather than paying rent. As a result, we expect the commercial property asset class within SMSFs to remain on a growth trajectory.”
Up to speed
For brokers who want to add a commercial string to their bow, the most important thing to understand is the needs of your client, according to broker Melissa Ashcroft, group general manager at Sydney-based brokerage AAA Financial Group.
“You have to – on a personal and professional level – get to understand them. You don’t need to understand how every single business in Australia operates. However, you do need a generalist understanding of things like profit and loss and balance sheets,” Ashcroft says.
“If you have that knowledge yourself, then you can share that with your clients and have a better conversation with them.”
Ashcroft also cautions brokers who are new to the commercial space to avoid getting too far in over their heads with a class of finance they haven’t yet mastered.
“I’m always one to say stay in your lane and be really good at what you’re really good at. Saying that though, more and more brokers are diversifying. I also know that a lot of Australians are small-business owners,” Ashcroft says.
“So naturally, brokers are probably already doing home loans for self-employed, business owners or commercial property owners. That just leads back to knowing your customer and being confident enough to ask them questions about their business and how it operates.”
Meanwhile, Melissa Gielnik, managing director at Victoria-based brokerage Smart Lending, says it’s vital that brokers understand the quirks of these loans .
“If [a borrower is] not a savvy investor or you’re not established, the deposit required for commercial can be extremely substantial compared to resi,” Gielnik says.
“You can get a resi investment property for 10 per cent. But for a commercial property you need 20–30 per cent. You need to be established in order to buy commercial property.”
Team support
Lenders such as Thinktank are doing a lot to make life easier for brokers who want to do business in commercial and Wright cites the recent partnership with tech services provider CitoPlus as a good example.
“Thinktank and CitoPlus have worked together to revolutionise the commercial and SMSF loan submission process by completely digitising the experience, a long-awaited innovation in the industry,” Wright says.
“This streamlines the entire life cycle of a loan application, providing brokers with seamless access to the right information, product and policy guidance within the experience and market leading functionality in critical areas such as solution structuring, financial analysis and serviceability calculations.”
In addition to launching commercial digital applications, Thinktank has also redesigned its commercial application form and checklist that can be used offline or manually.
“The new application form consolidates all required pages for up to four companies and trusts each with two individuals, flows in an easy-to-follow format and flexibly adjusts to suit the scenario,” Wright says.
Wright says that the lender also provides brokers with plenty of support, including Thinktank’s knowledgeable and experienced relationship managers.
Gielnik says education is one of the most important investments a commercial broker can make.
“Seeking education and learning [about] what you’re doing is important,” Gielnik says.
“It can be hard because of the types of loans you have to learn. But at the same time, you shouldn’t be doing it unless you know how to do it.”
Changing gears
Writing commercial finance won’t suit every broker. But those who can manage the gear shift to commercial can add a compelling new string to their brokerage’s offering.
As client needs evolve, brokers who can confidently navigate both residential and commercial spaces will be better placed to grow their books.
“Ultimately, diversification done well is a win-win: brokers expand their business capabilities, while clients benefit from a broader array of solutions,” Wright says.
“This deepens relationships, encourages referrals, and ensures brokers remain competitive in a fast-changing market.”
