Broker Pulse: Commercial Lending — October Broker Activity

Commercial Mortgages

The median number of commercial mortgage applications submitted varies state by state—most notable with South Australia and the Northern Territory with a combined median of 2.5 applications, and Western Australia with a median of 1 application. The remaining states sit in the middle, with medians of 2 applications submitted each month.

Looking at the value of commercial mortgage applications submitted, we can see a stable distribution—most of the applications sitting somewhere in the middle and fewer at the extremes. Only 5% of brokers reported applications worth less than $250,000 and only 11% of brokers reported applications of over $5,000,000. The most common value groups are $500,001–$1,000,000 and $1,000,001–$2,500,000, each with 29% of brokers reporting submitting loans within these value ranges.

58% of brokers are submitting applications for commercial mortgages valued between $500,001 and $2,500,000.‍

Business Loans

Business loans saw a more stable monthly median number of applications submitted. SA & NT reported a median of 1.5 applications, and all other state/territory groups reported a median of 2 applications submitted.

When looking at the value of applications, we see a similar spread to commercial mortgages. However, they weighted slightly further to the left/lower value groups.The two largest groups were the $50,001–$250,000 and the $250,001–$1,000,000 groups, at 35% and 36% respectively. Only 10% of applications submitted were valued at under $50,000, and only 19% at over $1,000,000.

71% of brokers are submitting business loan applications valued between $50,001 and $1,000,000.‍

Asset Finance

Where business loans had little variance state-by-state, asset finance had the most regional variance. Vic & Tas show a monthly median of 7.5 applications submitted per broker, while WA had a median of 3 applications submitted per broker.

While there were more asset finance loans submitted on average in this period, the average value skews lower than other types of loans.

Once again, the weight of the bell curve shifts lower, now centred on the second-lowest value group with 39% of brokers reporting submitting applications valued at $50,001–$250,000. 

It is still notable that 2% of brokers report submitting asset finance applications valued at $5,000,001–$7,500,000. So while the most common price range for asset finances is lower than other types of commercial mortgage applications, the range between the highest value and lowest value is significantly larger.

67% of brokers are submitting asset finance applications valued between $50,001 and $1,000,000.‍

The varied data we see when looking at commercial mortgage applications reflects the diverse needs of brokers’ clients.

‍