Powered by MOMENTUM MEDIA
subscribe to our newsletter

SMSFs drive commercial mortgage demand

SMSF investors with an eye on commercial property are fuelling demand for finance.

Sydney-based commercial mortgage originator Thinktank has seen a significant jump in the number of approved and settled transactions over the past year as more customers decide to acquire commercial property through their SMSF.

“By far the majority of enquires are related to the SMSF acquiring a property to house the beneficiaries business operations, which is contributing positively to the overall size of commercial mortgage demand,” Thinktank head of sales and distribution Peter Vala told Mortgage Business.

“There has definitely been an increase in property purchases over the last year while there has also been a marked uplift in refinancing and requests for equity release by existing owners for business and personal investment,” Mr Vala said.

“We are seeing a consistent level of enquiry and as such our outlook for the remainder of the year and into 2015 is quite positive,” he said.

Advertisement
Advertisement

Mr Vala added that the commercial property loan segment is ripe for mortgage brokers looking to diversify.

“Commercial finance covers a wide area from asset finance, commercial property finance and cash flow-based lending scenarios which are separate again to the areas of construction and development finance,” he said.

“A residential broker needs to gain access to a number of trusted lenders with whom they can genuinely workshop transactions with and that are also happy to develop a broker’s commercial lending skill set."

Most institutions will offer brokers either spot or refer models or full trail and upfront commissions, Mr Vala said.

“If a residential broker can write a home loan for a self-employed borrower, then the step to writing straightforward commercial property transactions is well within reach of them with support from an appropriate lender,” he said.

PROMOTED CONTENT


 

SMSFs drive commercial mortgage demand
mortgagebusiness

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.