A second tier has committed to double its commercial portfolio through its broker channel.
ING Direct chief executive Don Koch has said he would like to see the bank's commercial loan portfolio double within the coming three years. The bank's head of broker distribution Mark Woolnough said many brokers remain unaware of the lender's commercial offering.
"Brokers only need the one accreditation with ING Direct to sell both residential and commercial loans, and we utilise the same application form and serviceability calculator as residential lending. So brokers who already deal with ING Direct will see similarities in the process," Woolnough said.
Woolnough said commercial deals between the $250,000 and $2m mark were the lender's natural "sweet spot". He commented that the bank's commercial offering was "set and forget", and that there were no annual reviews for loans under $2m which were performing well.
"This offers a certainty to customers as we know that when some of our competitors review commercial mortgages, it may result in changes to the loan such as the structure, fees and interest rate," he said.
Woolnough encouraged brokers who had typically focused on residential deals to consider diversifying into commercial loans.
"Many brokers don’t realise the commercial possibilities which may exist within their own portfolio and it may be as simple as looking at existing borrowers who are also business owners looking to expand, for example," he said.
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