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Thinktank has launched two new products to the broker channel this week, following feedback from the third-party channel for more business and investor products.
The non-bank lender, which distributes exclusively with brokers, has released a Commercial Max mortgage of up to $6 million for Full Doc, Mid Doc, and SMSF borrowers, which enables them to purchase or refinance industrial, retail, and office properties.
According to the non-bank lender, the new product came off the back of broker clients wanting access to larger loan sizes to drive growth within their business, property investment portfolios, or SMSF strategies.
The lender has also rolled out a Commercial Lease Doc product that allows borrowers to evidence servicing via a fully executed lease with 24 months remaining to an arm’s length tenant, “without the worry” of a weighted average unexpired lease term (WAULT) or weighted average lease expiry (WALE) for commercial loans up to $2 million with up to 70 per cent LVR.
Speaking to Mortgage Business about the new products, Thinktank’s general manager for partnerships and distribution Peter Vala commented: “At Thinktank we have worked exclusively with mortgage brokers since 2006, so it’s important that we listen to what they’re telling us and work with them on our product innovation. Supported by our aggregator partners, we regularly engage with brokers to find out how we can better meet their needs and that of their evolving client base.
“That’s why we’re particularly excited to launch the first of our new offerings for 2024…
“As the market changes, it has become increasingly important for brokers to be able to empower their clients with greater flexibility and smart finance solutions.”
Mr Vala noted that the last year has seen brokers navigate changing economic headwinds that have had an impact on consumer sentiment and the business sector.
“Taking on the challenge, brokers have developed or are developing deeper relationships with their customers as they find new and alternate ways to meet their customer’s financial objectives and or ease their cash flow concerns,” he said, adding that brokers are therefore “naturally diversifying their lending book by extending into products and services beyond that of pure residential lending”, which has been seen through the increased volume of commercial and SMSF loans Thinktank settled during the 2023 calendar year.
Indeed, data from the latest edition of the Mortgage & Finance Association of Australia’s (MFAA) Industry Intelligence Service Report showed that the number of mortgage brokers writing commercial loans increased to the second-highest figure on record while the total loan book value of commercial lending for mortgage brokers set a new record of $73.11 billion in that period.
Mr Vala concluded: “We expect the demand for innovative commercial lending solutions to persist in 2024 encompassing the range of purchase, refinance, and equity release transactions – either in traditional lending structures or using a range of SMSF lending options for purchases and refinances, especially under our new Commercial Max product for loans up to $6 million.”