Why Diversify? Build a More Resilient Business.

In a dynamic economy, relying solely on residential lending can be risky. Diversifying into commercial finance builds a more robust business that can weather market cycles, create consistent income, and transform you into a holistic finance partner for your clients.

You're Not Alone: The Trend is Clear

A growing number of brokers are making the same strategic move. This chart shows the portion of Australian mortgage brokers who are also writing commercial loans.

Step 1: Educate – Master the New Playing Field

This first step is the most critical. Commercial finance operates on fundamentally different principles from residential lending. Before you can advise a client, you must become a student and understand the key differences in how deals are assessed, structured, and regulated.

It's a Different Ballgame

The biggest mindset shift is moving from assessing the borrower to assessing the asset. Can the property or business generate enough income to service the debt? That's the core question.

This interactive card compares the core principles of residential and commercial lending. Click to see the other side.

Key Comparison

Understanding these distinctions in LVR, loan terms, and due diligence is essential for managing risk and setting correct client expectations from day one.

  • Focus: Borrower Income vs. Asset Income
  • LVR: Up to 95% vs. Typically 65-75%
  • Term: 30 Years vs. 5-20 Years
  • Regulation: NCCP Act vs. Largely Unregulated

Your Education Toolkit

Building your knowledge is the first practical step. Use this checklist to get started.

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Step 2: Find a Mentor – Your Unfair Advantage

In a field with fewer regulatory guardrails and higher stakes, a mentor is your most valuable asset. They provide the practical wisdom that bridges the gap between theory and practice, accelerating your success while protecting you from costly mistakes.

Finding the right mentor requires a targeted approach. You're looking for an experienced loan writer with a proven track record. Here are the best places to start your search.

Industry Associations

The FBAA & MFAA have official, endorsed mentor programs and directories of vetted professionals.

Your Aggregator

Many aggregators offer structured programs or can connect you with senior brokers in the network.

Professional Networks

Use LinkedIn strategically to follow, engage, and then make a personalised approach to specialists.

Networking Events

Industry conferences, trade shows, and lender days are fertile ground for face-to-face connections.

Step 3: Leverage – Find Gold in Your Client Base

Your most valuable source of commercial leads is already in your CRM. These clients know and trust you, making them the most logical and cost-effective place to find your first opportunities. Initiating this conversation is also a crucial defensive strategy to protect your existing relationships.

The Discovery Conversation

Weave these open-ended questions into your regular client reviews to uncover hidden commercial needs. Click a question to reveal the 'why'.

This broad question opens the door to conversations about expansion, which often requires financing for property or equipment.
This directly probes for triggers like needing a larger office or warehouse, a classic commercial real estate need.
This plants a seed for long-term strategic thinking and positions you as a proactive advisor, not just a loan facilitator.

Real-World Scenario

Here's how a simple review can pivot into a commercial opportunity.

YOU

"So, how's the design business going, Sarah?"

"It's booming! But we're bursting at the seams in our leased office and the rent is about to jump."

S
YOU

"That's a common challenge. Have you considered buying your own strata office? It's a different type of lending, but it's something I can help you explore."

Step 4: Start with Referrals – Earn While You Learn

The smartest and safest first step isn't to write a complex deal yourself. It's to partner with an experienced specialist. This "earn while you learn" model is the ultimate bridge between theoretical knowledge and practical competence, creating a win-win-win scenario.

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You Win (The Referrer)

Mitigate risk, avoid PI issues, and earn a referral commission.

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Your Client Wins

Receives expert advice and an optimal outcome from a specialist.

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You Win Again (The Learner)

Get a front-row seat to learn from a pro, building your competence for the future.

Your Referral Partnership Checklist

A formal, written agreement is essential. Use this checklist to ensure your partnership is clear, professional, and built on trust. Click each item for key considerations.

Define the exact process (e.g., email intro) and what triggers payment (e.g., loan settlement). This must be unambiguous.
Be precise. Is it a flat fee or a percentage of the upfront commission? When will it be paid (e.g., within 7 days of settlement)?
This is non-negotiable. The agreement must include clauses to protect client data and ensure you have explicit consent to refer.