A mortgage manager has told brokers unfamiliar with commercial lending that it will "hold their hand" through the process.
Australian First Mortgage has announced it will drop rates on its commercial products for the second time in 10 days. The lender has cut variable commercial rates by 30bps, and has introduced a new fixed rate commercial loan with a three-year rate of 6.90%.
AFM had previously announced cuts to commercial rates on its Smart Suite products, dropping five-year rates by 55bps and one-year rates by 35bps.
AFM director Iain Forbes said the commercial market was seeing activity from brokers who had previously restricted themselves to residential deals.
"What we are seeing is the broker who did not sell commercial loans because he thought it was too difficult is now embracing the fact that it's not too difficult," he said.
Forbes told Australian Broker that AFM was keen to train brokers to enter the commercial space.
"We are here to help the broker who wants to sell commercial loans. The commercial broker is not who we're after. We're after brokers who are looking to learn about commercial lending, and we'll hold their hand all through the process," he said.
Non-banks fight to compete on fixed rates