The commercial lending landscape in Australia is becoming increasingly competitive, with a growing number of mortgage brokers catering to businesses seeking financing. Here’s how to choose a commercial mortgage broker in Australia. 

According to the Mortgage and Finance Association of Australia (MFAA), commercial lending accounted for more than 25 per cent of the $1.9 trillion in outstanding mortgage debt in Australia (March 2023). With such a significant market, it's crucial to partner with the right commercial mortgage broker to secure the best financing terms. 

Sebastian Mantello, founder of Integrity Finance Brokers, understands the importance of finding the right solution. “Our role is to navigate the complexities of commercial lending and provide tailored solutions that align with our clients' unique business goals,” he says. 

Whether you're seeking funding for a commercial property purchase, business expansion, or refinancing, choosing the right commercial mortgage broker can make all the difference. Here’s how to find the best broker for your business needs. 

1. Check their accreditation and experience  

Ensure your broker is accredited with professional industry bodies such as the MFAA or the Finance Brokers Association of Australia (FBAA). This ensures they adhere to strict codes of conduct and receive ongoing training in commercial lending practices. 

Experience is also paramount – the MFAA reports that the average Australian commercial broker has over 15 years of industry experience. Opt for a broker with a proven track record in arranging commercial finance across various industries and property types. 

2. Ensure they work with a diverse panel of lenders  

A commercial broker's value lies in their ability to compare loan options across multiple lenders. The more lenders on their panel, the more options they can assess to find you a competitive deal tailored to your business's specific needs. 

“We don't limit ourselves to a handful of lenders," says Sebastian. "We work with a diverse range of banks, non-bank lenders, and specialised commercial finance providers to ensure our clients have access to the best possible financing solutions." 

While the average Australian mortgage broker settled 30 residential home loans in 2016-17 according to Deloitte, the average mortgage broker who also arranges commercial loans settled three loans in this category in the same period. Work with a broker who has expertise in the commercial mortgage space and understands the intricacies of this specialised area. 

3. Clear and consistent communication

Clear communication is essential when securing commercial finance. Look for brokers who take the time to understand your business's unique needs, explain complex terms in simple language, and keep you updated throughout the entire process. 

"We pride ourselves on our ability to break down intricate financing structures into easy-to-understand terms," says Sebastian. 

4. Fee transparency

Commercial mortgages typically have higher loan amounts and require larger down payments (often 20-30% or more) compared to residential mortgages as they are considered riskier investments.

While most commercial brokers receive commissions from lenders, some may charge additional client service fees. Choose a broker who is upfront about their fee structures from the start to avoid any surprises down the track.

5. Industry connections and market insights

A well-connected commercial mortgage broker can be a valuable asset with access to off-market opportunities, industry insights, and connections within the commercial real estate and finance sectors.

“Our extensive network of industry professionals, including property developers, real estate agents, and legal professionals provides our clients with a competitive edge when securing the right property,” says Sebastian.

6. Expertise across various loan products

Commercial borrowers have diverse financing needs, from investor loans and construction loans to specialised products like asset finance and debtor finance. Commercial mortgages have stricter qualification requirements, including a thorough analysis of the borrower's business plan, financial statements, and the property's income-generating potential. 

Your broker should be well-versed in various loan products to cater to your business' unique situation.

“We take a consultative approach, thoroughly understanding our clients' goals and requirements before recommending the most suitable financing solutions,” says Sebastian.

7. Holistic consideration of your financial situation

The best commercial brokers take a comprehensive view of your business's entire financial circumstances, considering factors such as revenue streams, existing debts and assets, credit history, and future growth plans.

With a complete picture of your financial situation, the broker can make informed recommendations that factor in your business's overall economic health – not just securing a loan. This holistic approach ensures the financing solution aligns with your broader financial strategy and long-term goals.

Availability and responsiveness

Commercial transactions often involve tight timeframes, so you need a broker who is accessible and responsive. Whether you're trying to submit an offer, obtain pre-approval, or meet other deadlines, delays in responses from your broker could jeopardise the deal.

Look for brokers with a dedicated support team to ensure prompt availability and quick responses to your inquiries, even during peak periods.

9. Positive client reviews and testimonials

Positive reviews and testimonials from satisfied clients are a strong indicator that the broker prioritises customer satisfaction and goes above and beyond to ensure a positive experience.

Look for client reviews that highlight the broker's attention to detail, in-depth knowledge of the commercial lending landscape, and commitment to finding the best possible financing solutions.

10. Digital capabilities and efficiency

A tech-savvy commercial mortgage broker can streamline the loan application process and can save you time and hassle while ensuring a seamless process.

Ask your potential broker about their online tools, mobile apps, and digital platforms that facilitate document sharing, e-signatures, and real-time updates.