Commercial offers solid ground after tax temblor
Non-bank lenders and private capital are reshaping Australia’s commercial lending market as traditional banks tighten their grip
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THE LATE JUNE property tax earthquake upending long-held practices around capital gains and negative gearing is still sending shockwaves through the Australian broker community.
But the thing about earthquakes is that while they destroy the built environment, they can also reshape the land itself. Seabeds lift, new ground rises above the waterline, and what was once marginal or under-appreciated can suddenly become viable.
Australia’s commercial property market is having its own version of that moment. Residential investors who built their strategy on negative gearing felt the ground shift under them when legislation replaced the 50% CGT discount with an inflation-indexed cost base and a minimum 30% tax on real gains. But once the dust settled, the industry saw what was left standing − commercial property.
Commercial assets have been carved out of the new negative gearing restrictions, and top commercial lenders already see investor capital moving in their direction as a result. But the conversations happening between brokers and their lending partners extend well past tax law. They cover competitive positioning, a widening gap between price and execution, how technology is being absorbed into credit decisions, and an opportunity in commercial lending that some brokers may not have yet fully grasped.
For brokers, the shift means a client base still working through the shock of one tax change is quietly building interest in another asset class entirely, and the lenders best placed to serve them are already adjusting.
“For brokers, the key message is to have finance conversations early. Lending shouldn’t be an afterthought once a transaction has been structured. Bringing lenders into the conversation earlier helps ensure the funding strategy supports the transaction and avoids unnecessary surprises later,” Corsi says.
Andrew Torrington, co-founder, managing director and chief investment officer of Woodbridge Capital, takes a similar positive view on what the changes mean but adds some nuance around how the changes might alter borrower behaviour. “Commercial property remains fundamentally an income-producing asset, and most commercial borrowers make investment decisions based on rental income, asset quality, debt servicing capacity and the underlying business case, not solely on capital gains tax concessions,” says Torrington.
He expects greater emphasis on income yield, shorter investment horizons and the choice of ownership vehicle, along with renewed interest from SMSFs in commercial property, given the new restriction targets residential property borrowing specifically.
Joel Harrison, national manager of commercial partnerships at Thinktank, frames the change as an expansion of the commercial conversation brokers are already having with clients. “Commercial property remains largely unaffected by the reforms and continues to offer attractive opportunities for investors and business owners,” he says. Many brokers are already broadening their commercial lending capability as clients reassess their options beyond traditional residential investment lending.
“Brokers are well positioned to understand these motivations because they’re close to their clients’ broader circumstances. The strongest conversations go beyond the asset itself and focus on what the borrower is ultimately trying to achieve,” Corsi says.
Torrington points to a related driver: borrowers moving away from banks whose appetite has narrowed. “The primary drivers of refinancing today are not financial distress, but maturity, flexibility and certainty of funding,” he says. “Many borrowers are coming to the end of existing loan terms and are looking for a lender that can support the next stage of their project, whether that’s extending a construction facility, funding residual stock, refinancing an investment asset or releasing equity for a new acquisition.”
Lenders are also seeing borrowers refinance away from lenders whose credit appetite has changed. Many banks have become more conservative in areas such as development finance and residual stock, pushing borrowers toward specialist non-bank lenders willing to take a more commercial view while maintaining disciplined credit standards.
Bannister frames the same trend as an opportunity for brokers to reposition themselves. “The strongest brokers recognise these motivations and position themselves as strategic advisers rather than simply arranging a loan,” he says. Bannister expects those conversations to become increasingly sophisticated as the market heads into a period of added complexity.
Where deals fall over
Ask any given lender where a commercial deal is most likely to collapse after initial approval, and the answer rarely points to the underlying asset.
“Commercial deals rarely fall over because of the property itself. More often, they fail because expectations haven’t been aligned early enough between the borrower, broker and lender,” says Torrington. He lists changes to a borrower’s circumstances, insufficient equity, and exit strategies that don’t hold up under scrutiny as the most common culprits.
Harrison agrees that early collaboration between all parties, not the credit decision itself, determines how smoothly a deal proceeds. “The best outcomes occur when the broker, client, accountant, adviser and lender work together from the outset to understand the client’s objectives, identify any unique requirements and address potential complexities before they become obstacles,” he says.
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 assets under management. We believe that property and home ownership 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.
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Maurice Corsi, national sales manager at Equity-One, sees the same reassessment playing out among his own clients. “Any change to tax or investment settings naturally causes people to take stock of their position,” he says. “We expect these changes will lead to more conversations around how assets are held, future investment plans and what that means from a funding perspective.” The fundamentals of commercial lending have not changed, he adds, with lenders still weighing the quality of the asset, the borrower’s position, the purpose of the funding and how the loan will be repaid.
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Cory Bannister
La Trobe Financial
Industry experts
Andrew Torrington is co-founder, managing director and chief investment officer of Woodbridge, where he leads investment strategy, portfolio management and investor relations. He brings over 30 years across real estate investment, development, construction and property finance in Australia, New Zealand and the UK. Previously managing director at Merricks Capital, Torrington built the firm’s real estate debt platform, deploying more than $4 billion in senior secured loans over five years. Earlier roles include COO at Probuild, CEO of The Pacific Group and ASX-listed Verticon Group, and a decade at Multiplex spanning its 2003 IPO. He holds an MBA and bachelor of commerce.
Woodbridge Capital
Andrew Torrington
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, he is focused on managing substantial wholesale and retail investors. Bannister holds diplomas in mortgage lending and business accounting and resides in Melbourne.
La Trobe Financial
Cory Bannister
Why borrowers are refinancing
Refinancing activity seems to be being driven by strategy rather than distress.
“Commercial borrowers are increasingly refinancing or restructuring for strategic reasons rather than simply chasing a lower interest rate,” says Harrison. “Many are looking to improve cash flow, release equity for future investment, consolidate facilities or ensure their lending structure better aligns with the next stage of their business or investment strategy.”
Corsi says the same pattern is showing up in the enquiries reaching Equity-One. “A borrower might refinance or restructure because of a maturing facility, to release equity, changing liquidity requirements or to ensure their funding still suits their needs. It’s rarely one single driver behind the decision,” he says. Borrowers are taking a closer look at whether their existing funding still aligns with where they are heading, he adds, with changing market conditions, borrowing costs and investment timeframes all playing a part.
“Good commercial lending is built on preparation, not simply achieving approval”
Cory Bannister, La Trobe Financial
Price is no longer the whole conversation
Across the lending sector, one theme recurs more than any other: borrowers and their brokers are weighing certainty of settlement as heavily as rate. “Brokers are telling us regularly that what matters most in the current market is not simply access to capital but consistency of appetite and execution certainty,” says Bannister. Those qualities matter more in commercial lending, because transactions are often larger and more complex than their residential equivalents.
Torrington describes the same shift more bluntly, noting what borrowers are now prepared to pay for. “Borrowers are looking for more than just the lowest interest rate, they value certainty of execution, speed, flexibility and a lender they can rely on to deliver.”
“We are not trying to be the biggest lender − we are focused on being one of the most disciplined. Our capital preservation philosophy means we are prepared to walk away from transactions that do not meet our risk parameters, regardless of how competitive the market becomes,” Torrington says.
As the major banks continue to focus on lower-risk, vanilla transactions, this leaves specialist non-bank lenders to fund projects that are fundamentally sound but need a more commercial approach.
Harrison attributes some of that shift to how closely broker-only lenders track feedback from the market. “As a lender that is exclusively broker distributed, we have the advantage of listening closely to the people who are in front of clients every day,” he says, pointing to Thinktank’s recent increase in its maximum loan size as one example.
“Broker feedback plays an important role in shaping our product development, credit policy and process, ensuring we’re continuing to evolve in line with market needs. Recent enhancements, including increasing our maximum loan size to $10 million, reflect that commitment.”
Corsi says Equity-One’s approach starts from the same premise, applied earlier in the process, noting, “Good risk assessment starts before approval. It is about asking the right questions and understanding the full story behind the transaction, not just the asset or the numbers in isolation.” Equity-One wants its brokers to act as its first line of credit, he adds, which is why it sees value in connecting brokers directly with its credit team once a transaction is underway, both to assist with the deal at hand and to build a better understanding for future scenarios.
Bannister’s advice to brokers is more direct still, and centres on preparation over pace. “Good commercial lending is built on preparation, not simply achieving approval,” he says. Bannister urges brokers to identify potential complexities around security, borrower structures and settlement timing as early as possible, and to raise them with their BDM well before a term sheet is issued.
“A borrower might refinance or restructure because of a maturing facility, to release equity, changing liquidity requirements or to ensure their funding still suits their needs. It’s rarely one single driver behind the decision”
Maurice Corsi, Equity-One
Published 24 Aug 2026
Andrew Torrington
Woodbridge Capital
Equity-One™ is a non-bank SME commercial loan specialist with more than 30 years’ experience providing property-backed finance solutions for borrowers across Australia. The business provides short-term commercial lending, supporting borrowers with a simpler path to finance where traditional lending does not fit. In 2022, Westlawn became a major shareholder in Equity-One, providing the business with the backing and resources of Westlawn and its parent company, COG Financial Services Limited.
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The opportunity brokers are underestimating
For Harrison, the biggest blind spot in commercial lending isn’t about process at all: it’s about scale. “Brokers now write more than 80% of new residential home loans, yet commercial lending remains significantly underpenetrated, with broker market share generally estimated at around 35−40%,” he says.
Harrison believes the opportunity often exists within a broker’s existing client base, among business owners and property investors who will eventually need more sophisticated funding solutions.
Joel Harrison
Thinktank
Maurice Corsi
Equity-One
Joel Harrison is national manager of commercial partnerships at Thinktank, where he leads strategic aggregator relationships across Australia to drive commercial lending growth, broker capability and digital innovation. With extensive experience in commercial and SMSF property lending, Harrison is passionate about helping brokers diversify their businesses through education, practical support and smarter lending solutions. He has deep expertise in commercial lending policy, loan structuring, broker education and CRM-driven sales strategies, and has played a key role in advancing digital transformation across the commercial lending process. Harrison is recognised for his strategic thinking, collaborative leadership and strong focus on broker success.
Thinktank
Joel Harrison
Maurice Corsi is the national sales manager at Equity-One™, where he is responsible for growing the business’s national footprint through the third-party channel. Bringing a diverse range of experience across mortgage aggregation and lending, Corsi works closely with brokers across Australia to support commercial lending opportunities and build long-term relationships.
Equity-One
Maurice Corsi
At Thinktank, we work exclusively with mortgage brokers, and that focus underpins how we continue to evolve and improve our offering. We are committed to developing products and solutions that support brokers in delivering quality outcomes for their clients, while maintaining a straightforward, positive and consistent experience. Thinktank was established in 2006 in response to a previously unmet need for straightforward, set-and-forget commercial lending solutions. Since then, our offering has continued to expand − with SMSF lending introduced in 2013, residential lending in 2018, and private lending in 2024 − reflecting our ongoing focus on supporting brokers across a broader range of client needs.
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Corsi points to a different shift altogether, one he thinks is easy for brokers to overlook. ”One shift we’re seeing is the growing role of residual stock facilities. With higher interest rates, increased holding costs and more cautious buyers, sell-down periods are taking longer than many original funding structures planned for,” he says. Brokers need to realise transitional capital is becoming part of the overall funding strategy, he adds, and to understand which lenders are best placed to support borrowers at each stage of that cycle.
Torrington’s view of the underestimated shift is narrower but connects to the same theme of value beyond price. “One of the biggest shifts I think brokers are underestimating is the increasing importance of execution certainty over headline pricing,” he says. “Today, borrowers are placing far greater value on whether a lender can actually deliver the funding on time, with consistent terms and without introducing unnecessary uncertainty late in the process.”
In a market where projects often have tight settlement deadlines and significant equity at stake, certainty has become a genuine competitive advantage. The recent ground shift in property tax adds another layer to that complexity: with ownership structures and exit strategies now under fresh scrutiny, borrowers have even more reason to value a lender that can execute cleanly and on schedule.
Bannister is positive on the role for non-banks in this altered terrain. He says sophisticated borrowers and their brokers are increasingly choosing non-bank lenders first, not as a fallback when banks decline a deal.
“[Borrowers and brokers] value certainty of capital, flexibility credit policy and a pragmatic approach to structuring more complex transactions, and that’s a vital mindset shift,” says Bannister, adding, “The most successful brokers won’t simply know where a deal fits, but they’ll understand which funding partner is best suited to help their client achieve their broader commercial objectives.”
“Borrowers are placing greater value on flexibility, certainty of execution and working with lenders that understand the nuances of commercial transactions”
Joel Harrison, Thinktank
“Today, borrowers are placing far greater value on whether a lender can actually deliver the funding on time, with consistent terms and without introducing unnecessary uncertainty late in the process”
Andrew Torrington, Woodbridge Capital
Technology’s role: enabler, not replacement
Data and technology, while hugely impactful, are tools that speed up assessment rather than substitutes for judgement.
“Technology enhances our decision-making; it certainly doesn’t replace it,” says Bannister, who argues many transactions simply can’t be assessed by algorithms alone.
Corsi sees a similar dividing line at Equity-One, though he points to a different use case altogether. One area that’s playing an increasingly important role is fraud prevention. As more information and transactions move online, lenders need stronger processes around identity verification, document validation and understanding the information they’re relying on when making a credit decision,” he says, adding that commercial lending is not purely a data exercise.
“At Equity-One, we’re still very much people-led. The future of commercial lending is where technology supports better decisions rather than replacing the experience and judgement behind them,” Corsi says.
Torrington goes further, addressing where he thinks artificial intelligence will and won’t change commercial credit decisions. “I don’t see AI replacing experienced credit professionals anytime soon,” he says. “Lending is ultimately about assessing risk, understanding people and making judgement calls that often sit well beyond what historical data alone can tell you.” Torrington expects the lenders with the greatest advantage to be those combining better data with experienced investment teams.
Harrison believes the greatest opportunity lies in using data to remove administrative friction so brokers, relationship managers and credit teams can spend more time on the parts of a deal that still require experience: structuring solutions and understanding clients. “We see technology as an enabler rather than a replacement for expertise,” he says.
A tax shift that favours commercial property
The scale of the reform has caught plenty of advisers and investors off guard, but its effect on commercial lending looks broadly favourable.
“The recent legislative changes represent a generational tax shift, but for commercial lending the outcome remains broadly positive,” says Cory Bannister, senior vice president and chief lending officer at La Trobe Financial. With commercial property carved out of the negative gearing restrictions applying to established residential property, existing tax treatment remains intact, and investor interest is quickly shifting toward commercial assets.
There has already been a sharp increase in residential investors making initial enquiries into commercial property as the removal of negative gearing on existing dwellings pushes them to look elsewhere. Where residential investors had typically accepted yields of 2−3% in exchange for negative gearing benefits, some are now achieving yields of 5.5−7% in commercial. Part of the appeal is structural: many commercial leases pass outgoings such as council rates, insurance and strata levies on to the tenant, unlike residential leases, sharpening the cash flow case further. The shift has extended into SMSF lending too, with new rules banning SMSFs from using limited recourse borrowing arrangements to purchase residential property, while commercial property borrowing through SMSFs remains untouched.
What the book is telling us
Arrears, valuations and serviceability data across these lenders’ books point to a market settling rather than straining.
“Arrears remain very low and loan performance continues to track in line with expectations. We are not seeing widespread borrower stress,” says Torrington. Valuations have also stayed broadly stable across major capital cities, with data pointing to a market normalising rather than deteriorating. Knight Frank’s Australian Horizon 2026 report found that industrial capital values rose 3.1% on average over the past year, while retail capital values rose 2.0%.
Harrison sees a similar shift, though he frames it around borrower behaviour rather than portfolio metrics. “Interest rates remain an important consideration, but they’re no longer the only driver of lending decisions. Borrowers are placing greater value on flexibility, certainty of execution and working with lenders that understand the nuances of commercial transactions,” he says.
For brokers, that reinforces the value of understanding a client’s broader objectives rather than simply sourcing the sharpest rate.
Bannister describes the same resilience from La Trobe Financial’s vantage point, while flagging that performance is not uniform. “The encouraging story is that we’re continuing to see resilience across our total portfolio, including residential and commercial, where arrears levels remain within historical ranges,” he says. “The broader commercial market appears to be entering a period of greater stability and measured confidence, supported in part by the recent legislative changes."
Woodbridge Capital is a leading Australian and New Zealand investment manager and non-bank lender with a vision to offer something different to private credit: clarity and openness in every aspect of what we do.
The team bring decades of proven experience to the table, with a track record spanning over 30 years in property finance, real estate investment, development and construction. Over the past decade, we have deployed and managed more than $6 billion in loans, with zero loan impairments.
For brokers, developers and borrowers thus means a lender who genuinely understands projects, communicates clearly and partners through challenges. Our dual commitment to transparency and expertise ensures that every stakeholder benefits from resilient outcomes, sustainable growth and enduring trust.
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Source: Knight Frank Australian Horizon report 2026
Commercial property values rising
Industrial capital value growth in 2025
+3.1%
Retail capital value growth in 2025
+2.0%
Source: MFAA Quarterly Market Share report
55.3%
Proportion of new residential lending settled by brokers
40%
60%
80%
100%
76.0%
76.8%
77.6%
77.3%
76.7%
81.0%
Mar 2018
Dec 2024
Mar 2025
Jun 2025
Sep 2025
Dec 2025
Mar 2026