MPA turns the spotlight on commercial lending, catching up with Thinktank CEO Jonathan Street.
MPA turns the spotlight on commercial lending, catching up with Thinktank CEO Jonathan Street.
Are regulators looking more closely at commercial lending, and what could this mean for brokers?
From our perspective, it would only appear that the construction and apartment segment is of any genuinely elevated concern with the regulators as fears of an oversupply in major metro markets rise. Mainstream lending for typical commercial properties seems to be no more in the spotlight than would normally be the case, although we are seeing some of the banks tightening up on commercial lending appetite as they balance the cost of capital on commercial versus other types of lending and manage their prudential limits around how much they can lend in this area.
How can brokers make the most of a restricted credit environment?.PNG)
Keeping right up to speed with what their panel of lenders might be implementing with product and pricing changes, and making sure they have good access to a range of lenders, is the first thing to do. The better the range on panel the better equipped brokers will be to work through which lenders are keen to support their business and the specific needs of their clients. Aggregator BDMs and commercial specialists will be right on top of what is happening in the market and are ideally positioned to steer brokers in the right direction as they are talking to lenders all the time.
Which parts of commercial lending is Thinktank focusing on for the 2016/17 financial year?
Our focus remains firmly with our core expertise in commercial property across the entire range of full-doc to alternate verification and self-certified income, SMSF lending and, increasingly, residential property being used for a commercial purpose, including where it may be captured under the NCCP. Activity has been very strong this year, with record volumes that look set to continue, and yet we are seeing a number of the banks being more selective in how they choose to support brokers and clients. We are unaffected by those forces and we are keen to assist brokers with any type of commercial property transaction.
Are regulators looking more closely at commercial lending, and what could this mean for brokers?
From our perspective, it would only appear that the construction and apartment segment is of any genuinely elevated concern with the regulators as fears of an oversupply in major metro markets rise. Mainstream lending for typical commercial properties seems to be no more in the spotlight than would normally be the case, although we are seeing some of the banks tightening up on commercial lending appetite as they balance the cost of capital on commercial versus other types of lending and manage their prudential limits around how much they can lend in this area.
Fast fact
NAB’s Q2 2016 business survey recorded the highest conditions for SMEs in six years
NAB’s Q2 2016 business survey recorded the highest conditions for SMEs in six years
How can brokers make the most of a restricted credit environment?
Keeping right up to speed with what their panel of lenders might be implementing with product and pricing changes, and making sure they have good access to a range of lenders, is the first thing to do. The better the range on panel the better equipped brokers will be to work through which lenders are keen to support their business and the specific needs of their clients. Aggregator BDMs and commercial specialists will be right on top of what is happening in the market and are ideally positioned to steer brokers in the right direction as they are talking to lenders all the time.
Which parts of commercial lending is Thinktank focusing on for the 2016/17 financial year?
Our focus remains firmly with our core expertise in commercial property across the entire range of full-doc to alternate verification and self-certified income, SMSF lending and, increasingly, residential property being used for a commercial purpose, including where it may be captured under the NCCP. Activity has been very strong this year, with record volumes that look set to continue, and yet we are seeing a number of the banks being more selective in how they choose to support brokers and clients. We are unaffected by those forces and we are keen to assist brokers with any type of commercial property transaction.
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