“We’ve been beneficiaries of growth in part [because] the current trade environment lends itself to creating a fair bit of disruption and complexity in commercial borrowers’ lives”
CORY BANNISTER,
LA TROBE FINANCIAL
“Cybersecurity is now the highest risk to clients in Australia. We’ve got to be very careful in how we share client information”
chris hall,
blue crane capital
“The benefit of using non-bank lenders, particularly for small business owners, is being able to carve out their trading business, which is a really important thing for a lot of people”
dean papas,
la private
“Having access to settlements officers, analysts; just being able to pick up the phone and have a conversation – it’s invaluable”
HEINRICH BRENDEL, BLUE CRANE CAPITAL
In Partnership with
Confidence in commercial rising as rate relief eyed
La Trobe Financial and brokers are positioning themselves to support commercial property developers and investors through a period of transition and opportunity
Read on
Cory Bannister
La Trobe Financial
Jeremy Enconniere
La Trobe Financial
Chris Hall
Blue Crane Capital
Heinrich Brendel
Blue Crane Capital
Industry experts
AS THE likelihood of a falling interest rate environment in 2025 grows, commercial property lenders and brokers are positioning themselves for an expected uptick in development activity and renewed borrower confidence.
Traditional banks continue to be risk-averse, enforcing stricter lending criteria – now a long-term trend that means any upcoming lower interest rate environment may not follow the patterns of previous periods when borrowing was cheaper. This positions non-bank lenders as key players in supporting property developers and investors through a period of transition that presents both challenges and opportunities for brokers, lenders and borrowers alike.
While lower rates will provide a welcome tailwind, issues such as construction costs and valuations will remain key concerns as these have ratcheted up and are unlikely to fall regardless of central bank monetary policy. This evolving environment requires all market participants to be adaptable and resilient.
Two senior managers at La Trobe Financial recently met Australian Broker and a group of commercial mortgage brokers and financial service experts at Cafe Sydney restaurant to discuss commercial markets, how La Trobe Financial is adapting to changes in the financial landscape, and what the future may hold for lending solutions in the face of technological advances and new challenges.
The high interest rate environment has been tough for commercial property borrowers, particularly those who secured mortgages during periods of historically low rates.
“The pace of interest rate increases has well exceeded the potential increases in rental yield, which means many commercial borrowers are behind on their interest cover ratios with banks,” said La Trobe Financial’s senior vice president and chief lending officer, Cory Bannister.
The complexities borrowers face, and more difficult lending conditions, have spurred business for commercial brokers. “We’ve been beneficiaries of growth in part [because] the current trade environment lends itself to creating a fair bit of disruption and complexity in commercial borrowers’ lives,” said Bannister.
As borrowers are forced to seek more tailored solutions, brokers have emerged as vital intermediaries who can help navigate the intricacies of funding options.
Dean Papas, senior executive at LA Private, shared the importance and rarity of the bespoke approach offered by La Trobe Financial. “The major banks generally like to have the whole piece of the pie,” he said. “The benefit of using non-bank lenders, particularly for small business owners, is being able to carve out their trading business, which is a really important thing for a lot of people.”
Over the long term, the shift away from traditional banking has been dramatic. For example, Chris Hall, managing director and founder of Blue Crane Capital, has seen a complete reversal in his business mix.
“I started the business in 2017 ... and 90% of what I was doing was bank,” said Hall. “Now, probably 80 to 90% is non-bank.” This change illustrates a significant transition in the lending landscape, driven by clients’ desire for quicker access to funds and greater flexibility of lending solutions.”
This disruption has created opportunities for mortgage brokers to demonstrate their value. Matthew Paterson, commercial broker at Partnership Finance Group (PFG), highlighted the need to maintain consistent communication with clients.
“We’re doing simple things like returning emails, returning phone calls, just being a consistent, reliable adviser to the client and giving them options.”
This strong service mentality, evident across the market, underscores how brokers have built significant trust capital, and non-banks can leverage and amplify this by going the extra mile on commercial deals during tough times.
But the shift towards broker involvement is not just about convenience; it reflects a fundamental rethinking of the way commercial lending operates in the current economic climate.
“We’ve seen a strong tailwind for brokers,” Bannister said. “Borrowers need guidance and advice to navigate through that; they can’t just walk into a bank any more and get the solution they once could.”
Dave Brodie, a senior executive at LA Private, sees the rise of alternative lending in commercial markets as a much longer trend: “Since the GFC, it’s been a brokers’ market, and I think we’ll continue to be a brokers’ market. Thank God that the non-bank industry has blossomed and given so much choice.”
Another part of the appeal of non-banks like La Trobe Financial is their speed and availability. The pace of transaction processing has become increasingly important in commercial lending. Traditional bank processes often involve multiple layers of approval, which can slow down deals significantly. “No one’s got the time any more. It’s just too long. There are too many sets of hands that it has to go through, compared to the non-bank sector,” Brodie explained.
This efficiency advantage extends to the relationship between brokers and non-bank lenders. Heinrich Brendel, associate director at Blue Crane Capital, highlighted the importance of direct access to decision-makers: “Having access to settlements officers, analysts; just being able to pick up the phone and have a conversation – it’s invaluable. Deals don’t get stuck in large teams or passed around between people.”
Rising construction costs continue to challenge the development feasibility of commercial real estate projects, particularly in major markets like Sydney.
Jeremy Enconniere, senior account manager in La Trobe Financial’s Real Estate Credit Finance Division, has noticed the effect of rising costs on the market. He pointed to a “two-speed economy” emerging in the construction sector: “Outside of strong markets like Sydney, it’s been a struggle to get feasibilities to stack up in the last couple of years.”
As a result, some developers are taking a longer-term view, pursuing finance solutions that require fewer presales, in anticipation of market growth.
“Clients who purchase a site in general are sitting on it as funding is going to be difficult for them,” Enconniere explained.
But the gap between construction costs and end values varies significantly by location. “The gap between Sydney and certainly Melbourne, but even Adelaide and Perth, is now soaring – the gap there is astronomical,” Enconniere said. “Construction cost is slightly cheaper depending on the state you’re in, but all-in-all end values, which affect every development, are drastically different.”
For clients, this complicates matters to a degree that broker input becomes essential.
“Clients are finding it difficult ... feasibility is harder to stack up,” Enconniere said.
This also means developers’ struggle to secure funding has intensified, especially as banks maintain stringent presale requirements that complicate the financing of new projects.
The reduced emphasis on presales by non-bank lenders has become a major advantage. “That’s probably where the opportunity is because you’re not requiring those presale covenants up front,” Papas said. “The builder has the opportunity to potentially get [an appropriate] price in a couple of years’ time.”
Despite such challenges, there’s a growing sense of optimism among developers who are actively pursuing projects – and for those willing to take on a higher cost of capital, flexible lenders like La Trobe Financial provide a solution. “Developers that are active in the market at the moment are looking at finance solutions which do have limited presale requirements, because they’re all anticipating some growth in the market. As inflation comes off, rates will start to come off, affordability will improve, and that will naturally start to push up gross values on sales,” said Paterson.
“Developers are comfortable paying a higher cost of money at the moment, because with all the other factors in the market that they anticipate will go in their favour with rates coming down – this will improve values at the end, and they’ll make up that cost differential.”
Brodie said the cost differential between banks and non-banks is less of a factor than it used to be. Despite higher headline interest rates from non-bank lenders, the total cost of funding can be surprisingly competitive.
“We ran the interest comparison between a bank quote for construction finance and the non-bank pricing model, and over the 15-month term there’s $160,000 worth of difference. On a project of $25 million, it’s not that significant. If you went with the bank, they want 100% debt cover, and that would have cost you more than $160,000 to commence your project,” Brodie said.
Bannister has noticed this trend as well as people front-footing in anticipation of better conditions. “Many are comfortable accepting higher financing costs in the near term, believing that macroeconomic factors such as declining inflation and interest rates will improve affordability and drive value growth,” he said.
There is a consensus among industry experts that the current environment requires strategic thinking and careful planning. Bannister believes that “once you see rates start to come off, you’ll see the market pick up again a little bit”. This optimism reflects a broader belief in the resilience of the commercial property sector and the ability of developers to adapt to changing conditions.
The sector is gradually embracing technological change, though with careful consideration of security risks.
“Cybersecurity is now the highest risk to clients in Australia,” said Hall. “We’ve got to be very careful in how we share client information.”
The industry is actively working to develop more secure digital solutions for document sharing and loan processing, as traditional methods, such as email attachments and file-sharing services, have become increasingly vulnerable to cyber threats.
Paterson emphasised the need for better systems. “There’s got to be some central exchange that everyone’s comfortable with ... rather than breaking up a PDF and sending 10 emails,” he said.
Better efficiency and security in the transmission of sensitive information often requires training for brokers. This is especially important given that human error is consistently a high-ranking factor in data security breaches.
limited presale requirements, because they’re all anticipating some growth in the market. As inflation comes off, rates will start to come off, affordability will improve, and that will naturally start to push up gross values on sales,” said Paterson.
“Developers are comfortable paying a higher cost of money at the moment, because with all the other factors in the market that they anticipate will go in their favour with rates coming down – this will improve values at the end, and they’ll make up that cost differential.”
Brodie said the cost differential between banks and non-banks is less of a factor than it used to be. Despite higher headline interest rates from non-bank lenders, the total cost of funding can be surprisingly competitive.
“We ran the interest comparison between a bank quote for construction finance and the non-bank pricing model, and over the 15-month term there’s $160,000 worth of difference. On a project of $25 million, it’s not that significant. If you went with the bank, they want 100% debt cover, and that would have cost you more than $160,000 to commence your project,” Brodie said.
Bannister has noticed this trend as well as people front-footing in anticipation of better conditions. “Many are comfortable accepting higher financing costs in the near term, believing that macroeconomic factors such as declining inflation and interest rates will improve affordability and drive value growth,” he said.
There is a consensus among industry experts that the current environment requires strategic thinking and careful planning. Bannister believes that “once you see rates start to come off, you’ll see the market pick up again a little bit”. This optimism reflects a broader belief in the resilience of the commercial property sector and the ability of developers to adapt to changing conditions.
La Trobe Financial is Australia’s premier alternative asset manager and a proven and trusted investment partner for institutional and retail investors with c. A$20 billion in assets under management. We believe that property and homeownership are the foundation of wealth creation and achieving financial independence. This is why we have created our broad product range offering lending solutions to suit your needs at every life stage, from buying your first home through to building your business and maximising your SMSF and retirement income.
Find out more
Cory Bannister is senior vice president and chief lending officer at La Trobe Financial. Bannister has over 20 years’ experience in financial services and has held a number of positions across credit and distribution since joining the business in 2000. As CLO, Bannister is focused on managing substantial wholesale and retail investors. He holds diplomas in Mortgage Lending and Business Accounting and resides in Melbourne.
La Trobe Financial
Cory Bannister
Based in Melbourne, Jeremy Enconniere is a senior account manager in La Trobe Financial’s Real Estate Credit Finance Division. As a specialist commercial analyst, he manages major client and broker relationships across Australia, specialising in commercial credit and development finance. He has over seven years’ experience in banking and financial services, including in the mortgage industry across lending, distressed asset management and credit within the non-bank sector. His deep understanding of complex debt structuring helps him achieve the best outcomes for La Trobe Financial’s clients.
La Trobe Financial
Jeremy Enconniere
Chris Hall is the managing director and founder of Blue Crane Capital. He has built an extensive career at major financial institutions, with expertise in business, commercial and property finance. His in-depth knowledge of the lending landscape and proven ability to source and structure capital mean his insights are invaluable in helping clients make informed decisions.
Blue Crane Capital
Chris Hall
Heinrich Brendel, a dedicated athlete and driven professional, journeyed to Australia in pursuit of his passion for rugby in 2020. Equipped with a degree in Financial Management, he seamlessly integrated into the finance realm, joining Blue Crane Capital in April 2022. Brendel initially focused on settlements, but his aptitude for analysis and his commitment to excellence led him to transition into an analyst role. As associate director at Blue Crane Capital, he not only provides invaluable support to brokers but also exhibits a keen interest in internal reporting and operational strategies. Continuously striving for growth, Brendel is currently pursuing an Advanced Diploma in Accounting, further enhancing his expertise and contributions to the team.
Blue Crane Capital
Heinrich Brendel
In Partnership with
Fighting for
the customer
The customer owned a bank saw a huge boost after the Hayne Royal Commission. One year on and their market share is growing as customer continue to see their value.
Read on
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Stewart Saunders
Heritage Bank
Darren McLeod
Beyond Bank
Fernando Lemos
Bank Australia
Industry experts
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Bank Australia
Fernando Lemos
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Beyond Bank
Darren McLeod
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Heritage Bank
Stewart Saunders
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
In Partnership with
Fighting for
the customer
The customer owned a bank saw a huge boost after the Hayne Royal Commission. One year on and their market share is growing as customer continue to see their value.
Read on
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Stewart Saunders
Heritage Bank
Darren McLeod
Beyond Bank
Fernando Lemos
Bank Australia
Industry experts
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Beyond Bank
Darren McLeod
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Heritage Bank
Stewart Saunders
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Bank Australia
Fernando Lemos
Market disruption drives broker growth
Published 10 Feb 2025
Matthew Paterson
Partnership Finance Group
Dave Brodie
Partnership Finance Group
Dean Papas
LA Private
Matthew Paterson has 20 years of experience in the finance industry, focusing primarily on property finance in NSW, Qld and Vic. He built his career in property finance at St. George Bank and Commonwealth Bank and has developed his expertise working on a variety of transactions, including construction loans, mezzanine finance, residual stock loans, preferred equity and commercial property loans. Paterson has arranged financing from $2 million to over $100 million for some well-known property companies. He has also built a strong network in the property industry and assists his clients in delivering overall project solutions by engaging the appropriate industry professionals to ensure the right finance outcomes are obtained.
Partnership Finance Group
Matthew Paterson
David Brodie, senior executive at Partnership Finance Group, has over 30 years of experience in property finance across Australia. He spent 20 years in senior lending roles at domestic and international banks before founding Partnership Finance Group in 1998. Brodie has served on investment bank credit committees and advisory boards and held directorships in property development companies. He is currently a partner in Tulich Family Communities, which operates aged care and retirement villages in NSW. Specialising in tiered debt facilities, mezzanine finance and joint ventures, Brodie has arranged finance for major property developers and private investment banks across various sectors.
Partnership Finance Group
Dave Brodie
Dean Papas is a senior executive at LA Private and has over six years’ experience working with high-net-worth clients within the LA Group. His attention to detail and ability to deal with complex situations is what makes him one of the top brokers in the LA Group. He has a client-first attitude, great communication skills and is respected by all his clients for his support in achieving their business and personal goals.
LA Private
Dean Papas
Convenience, choice and speed
Rising cost of construction
Construction sector faces cost pressures
Growth in non-residential construction prices, Sept quarter 2024
Source: ABS Producer Price Indexes (PPI), September quarter 2024
0.5
1.0
1.5
2.0
2.5
NSW
Vic
Qld
SA
WA
Tas
NT
ACT
Australia
0.9
1.2
0.4
1.0
1.0
0.8
2.5
0.2
0.2
6.6
6.9
8.0
5.3
5.5
4.6
4.1
5.8
1.1
Quarterly change (%)
Annual change (%)
Non-banks front-footing for better conditions
“The gap [in construction costs] between Sydney and certainly Melbourne, but even Adelaide and Perth, is now soaring – the gap there is astronomical”
JEREMY ENCONNIERE,
LA TROBE FINANCIAL
Digital evolution and security concerns
Source: Thales 2024 Data Threat Report
Top data threat actors
Malicious insiders
#1 Actor
2021
#2 Actor
#3 Actor
Human error
External attackers
Human error
External attackers – hacktivists
External attackers – nation-state actors
2022
Human error
External attackers – hacktivists
External attackers – nation-state actors
2023
Human error
External attackers – hacktivists
External attackers – nation-state actors
2024
The industry is responding with new secure platforms for document sharing and communication. “We’re investing further in our broker portal so that all of our document sharing can be done in a closed pool, password protected, to better protect client data and reduce the risk of fraud,” Bannister explained.
While artificial intelligence and automation tools are gaining traction in residential lending practice, industry participants noted their limitations in complex construction lending.
“It’ll be effective in investment-style commercial transactions, but for construction stuff, there’s too much data and too many different scenarios,” said Paterson. “Everyone’s comparing investment memorandums … but I don’t feel that’s ever going to be automated. Construction deals require significant human judgement due to the variety of scenarios and data inputs involved.”
Papas acknowledged the industry’s gradual technological evolution: “We’re very spreadsheet based. Over the last couple of years, we have come a long way from a data perspective. Everything is pretty much online now – CRMs, online trackers and all that. But for us too, it’s a learning curve.”
He also believes there is a limit to how much AI can help: “You may use some AI to help prepare the bones of a paper, but there’s still going to have to be half of that input from yourself.”
While there is potential for AI to assist with certain tasks, human oversight remains essential.
“You can get some great assistance from AI to prepare forms for paper,” Bannister said, “but very rarely have I found that you can then issue it without further tinkering. When anything is fact-based, I think there’s a chasm to cover before we can trust AI solutions fully.”
Even so, over the long term, AI has massive potential. Brendel feels that embracing these tools will be crucial for brokers to remain competitive: “I think at some point you’re almost going to have to [adopt AI solutions], otherwise you’ll get left behind.”
He put the practical lifetime of some systems he currently uses at around 10 years given the advances that AI is making.
Despite current challenges, industry participants are looking forward to 2025, particularly if interest rates begin to ease. Bannister is picking early to mid-2025 for rates to finally drop.
“Between now and then, we expect conditions to remain broadly unchanged, which is good for brokers, good for non-banks, because it’s still challenging for people to get flexible solutions. We think the prospects are bright ... we’re optimistic about where the future goes.”
Enconniere added: “Even if we start to see the banks lean back in and take market share, we think it’s going to generate market activity anyway.” This positive outlook aligns with the longer-term view that demand for housing will remain strong, fuelled by population growth and government initiatives to accelerate development approvals.
A market with more capital
From left: Chris Hall, Blue Crane Capital; Dave Brodie, Partnership Financial Group; Heinrick Brendel, Blue Crane Capital; Cory Bannister, La Trobe Financial; Matthew Paterson, Partnership Financial Group; Jeremy Enconniere, La Trobe Financial; Dean Papas, LA Private
Commercial property values remain a key focus, with heightened scrutiny of capitalisation rates and yields over the past four to five years. Hall remarked on the increased attention lenders are paying to asset valuations.
“You’ve seen values of commercial assets in varying degrees ... it’s a lot harder to pay in,” he said.
As brokers look ahead, staying informed about emerging trends and challenges will be essential as the market ramps up again.
“I think a lot of clients are getting busier and busier, and we’re benefiting from that,” said Papas.
One reason activity is intensifying is the influx of private capital vying for a piece of the market.
“There’s a lot of capital around ... a lot of people wanting to lend money,” said Brodie, highlighting the robust appetite for lending in the current environment. This increased competition has resulted in better pricing and terms for borrowers, further fuelling market activity.
“The standard of commercial broking continues to improve ... it’s become a brokers’ market. Those who can pick their opportunities and cover off their risks are going to be good,” Brodie said.
Paterson is already seeing increased competition for larger construction loans. “I’ve recently tendered a number of larger construction loans, and everyone is falling over themselves to win the transaction,” he said. “I’ve gone through probably three or four rounds of tender with lenders knocking themselves down on terms and price, and the client is the only one that’s going to win.”
La Trobe Financial is also positioning itself to cater to the need for more specialised development funds and larger transaction sizes.
Improving broker service
For brokers and lenders alike, service quality continues to differentiate market participants.
“Access to decision-makers, responsive communication and detailed conversations about deal structures remain highly valued by brokers,” said Paterson, and are especially important for building trust and maintaining long-term relationships.
While the relationship between brokers and lenders like La Trobe Financial has been a critical factor in navigating the changing market, there are opportunities for improvement. Bannister noted that one area La Trobe Financial is focused on is enhancing its technology and digital lodgement capabilities.
“The standard of commercial broking continues to improve ... it’s become a brokers’ market. Those who can pick their opportunities and cover off their risks are going to be good”
dave brodie,
partnership finance group
“One thing that stands out to us that we’re certainly putting some time and effort and money into is improving our technology for commercial lodgement capability,” he said. “That’s one pain point that we know exists right across the industry, and we know this will be a huge tailwind for speed.”
All the brokers acknowledged the importance of speed, with Brendel pointing out that La Trobe Financial has been able to provide approvals in under 24 hours in some cases.
Overall, the prospects for brokers are strong as developers feel more confident about letting them take the reins to a larger degree.
“On the consumer side, the developers and directors of business have got to spend time focusing on their business, and they’re more comfortable now handing over to brokers to manage [deals] for them,” said Paterson.
Bannister is also optimistic, citing population growth and the need for housing as key drivers. “The longer-term thematics that we continue to look to are mostly centred around population growth and the need for housing … the government has got pretty bold plans," he said. "Clearly there’s going to be more weight put behind getting local councils to get through planning a lot quicker, which should fast-track much-needed activity.”
This sentiment was echoed by others around the table, who pointed out that potential rate reductions could stimulate increased activity in the commercial lending sector.
The road ahead
“I’ve recently tendered a number of larger construction loans, and everyone is falling over themselves to win the transaction”
matthew paterson, partnership finance group
“I think if we get some interest rate relief, it will bring our buyers back into the market,” Brodie asserted.
Another thing Brodie would like to see in 2025 is a change in government; “if you combine that with a relaxation in interest rates, I think the market will respond really positively”, he said.
As the commercial lending landscape continues to evolve, brokers and lenders must work in tandem to navigate the challenges and unlock the opportunities that arise. By leveraging the expertise and agility of partners like La Trobe Financial, brokers can provide the tailored solutions that their clients demand.
“We think the prospects are bright ... we’re optimistic about where the future goes,” Bannister said. He expects that a falling rate environment is “likely to produce further house price growth, which will flow through everywhere, even to commercial values”. This will then create a positive feedback loop where retail sales improve, and a range of other sectors will flourish.
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Cory Bannister
La Trobe Financial
Jeremy Enconniere
La Trobe Financial
Chris Hall
Blue Crane Capital
Chris Hall
Blue Crane Capital
Jeremy Enconniere
La Trobe Financial
Cory Bannister
La Trobe Financial
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
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