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Peter Vala, general manager partnerships & distribution, discusses Thinktank’s innovative approach to property finance and how they’re committed to helping brokers grow their business.
What key trends are you seeing that brokers should know about?
Market changes and forces within the lending space are being largely dictated by the asset class and location. For example, as the residential market softens we are seeing opportunities arise within other sectors such as industrial and warehouse property. Here, values in most locations continue to hold up or even strengthen (including a significant number of office properties in areas outside CBDs), as a result of leases with CPI and percentage increase clauses are protecting or even enhancing yields.
With interest rates continuing to rise and putting pressure on cash flow, another area where we are observing heavy demand is in cash outs and the restructuring of debt to reduce loan repayments and free up cash flow.
These trends indicate there is a changing and growing demand for lending beyond residential home and investment loans, with opportunities for brokers to diversify their client offering into commercial solutions.
What do you think the next big trend will be in the broker space?
Although SMSF lending is not new, this product area continues to gain momentum despite many brokers either overlooking it as an option or not fully grasping its potential. For example, we are seeing an uplift for residential investment and commercial properties where borrowers are taking advantage of leasing BRPs (business real property) to an associated entity.
To capitalise on this and other emerging opportunities in SMSF lending, brokers are best advised to work closely with their lender and/or aggregator partners to ensure they have a clear understanding of this specialist sector and to explore any new funding solutions available.
At Thinktank, we have a team of SMSF experts who can workshop deals with brokers from start to finish as well as provide ongoing support and education in all areas of SMSF and commercial lending.
What innovations have you rolled out to the broker channel recently?
We have recently introduced a raft of initiatives to further strengthen the range of products and level of service we are able to provide brokers. This includes introducing a short-form refinance process for both residential and commercial SMSFs; lifting our maximum loan per security to $4 million for Full Doc and Mid Doc commercial solutions; offering LVRs of up to 80 per cent on commercial security depending on the borrower’s required loan amount; and introducing a digital accountant’s declaration form for our Mid Doc alternate income verification product.
How have you been supporting brokers?
Updated pricing and policy. We have always been focused on how we can help brokers grow their business and best meet their clients’ financial needs. This means working with brokers and understanding the current challenges and opportunities they are facing and responding to. We translated this recently when updating our pricing and policy to provide even greater flexibility, such as now offering commercial loans up to $4 million and LVRs at 80 per cent to both Full Doc and Alternative Income Verification loans.
Education, upskilling, diversification. Supporting brokers in developing their knowledge and expertise where it can add long-term value has always been one of our priorities. We offer a range of both formal and informal education sessions throughout Australia, from webinars and “lunch & learn” sessions to boardroom workshops. In addition, we regularly run accreditation sessions catering to differing levels that are available to any broker wishing to expand their skills in commercial property and SMSF lending. Importantly, there are no minimum education or volume hurdle requirements to work with Thinktank.
Relationship managers. Every broker has their own dedicated relationship manager (RM). This offers direct access to support and provides the appropriate advocacy on every commercial loan to credit and key decision-makers. Our RMs stand by brokers every step of the way. This includes workshopping scenarios, assessment of credit applications, restructuring existing facilities and helping structure financial solutions to meet each borrower’s individual circumstances.
What other updates/changes can broker partners expect from you this year?
In the last quarter of 2022 we are planning to launch a market-leading SMSF solution and supporting education sessions. This will be available for brokers who have achieved a higher level of SMSF accreditation with Thinktank and are looking to deepen their knowledge and product offering in SMSF lending.
What distinguishes you as a leading partner for brokers?
The simple answer is we put brokers at the centre of our business. We solely deal in the third-party channel, ensuring the broker always owns the relationship with their clients. It’s why we formed Thinktank in 2006, to offer brokers a unique range of set-and-forget commercial loan products to help brokers grow their business and best serve the borrower. We support brokers via a dedicated relationship manager model and provide full, flexible commission options that weren’t previously available in the industry.
Peter Vala
general manager partnerships & distribution
Thinktank
“THE SIMPLE ANSWER IS WE PUT BROKERS AT THE CENTRE OF OUR BUSINESS”
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