Market Report 2025

Commercial Lending:
Speed vs. Relationship

The market has bifurcated. Algorithms drive speed, but relationships drive complexity. Here is your roadmap to navigating the split.

Broker Participation

37% Active

Of brokers now arrange commercial mortgages as a primary growth lever.

Fintech Speed

1.5 Days Fast

Average processing time for algorithmic lenders like Prospa and Shift.

Major Bank Lag

7+ Days Slow

Average time for majors like Westpac, prioritizing diligence over speed.

Diversification is Standard

Commercial lending is no longer a niche; it's a necessity. With residential volumes stabilizing, brokers are looking sideways for growth. Nearly two-thirds of the industry is either active in commercial or planning to enter immediately.

The Speed Gap

Broker Pulse data reveals a massive efficiency disparity. Fintechs utilize automated scraping to fund in hours. Banks, burdened by legacy systems, lag significantly behind.

The Triage Protocol

With such a divergence in speed and appetite, brokers must act as triage nurses.
Do not send an urgent working capital deal to a major bank.

Client Request Received
What is the Primary Driver?

"I need funds NOW"

Working Capital, Stock Purchase, ATO Debt

Route to: Fintech
  • 1.5 Day Turnaround
  • Higher Rate (Justified)
  • Low Doc / Bank Scraper
🏦

"I need a Solution"

Complex Mortgage, Development, Refinance

Route to: Major Bank
  • Lower Rate / Higher LVR
  • Relationship Banking
  • Complex Deal Structuring

Relationship Capital

If speed was the only metric, banks would be obsolete. They aren't.

Major banks, specifically ANZ, maintain dominance in Commercial Mortgages (33% broker usage). Why? Because complex deals require human credit appetite, not just an algorithm.

"For high-value assets, the relationship and rate security of a major bank outweighs the 7-day wait."

Navigating the 2025 "Credit Squeeze"

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Self-Employed Scrutiny

Lenders are tightening criteria for self-employed borrowers. Expect forensic analysis of "Add-Backs" and a renewed focus on the sustainability of business income in a softening economy.

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DTI & Cash Flow

Debt-to-Income (DTI) ratios are back in the spotlight. Lenders are looking for consistent cash flow evidence, moving away from pure asset-lend scenarios towards serviceability-first models.

Don't Learn on a Live Deal

Mishandling a commercial deal can damage your primary residential relationship. If you are new to the sector, adopt a "Spot and Refer" partnership model or find a commercial mentor.