MA Money is expanding its push into the commercial lending space after securing a spot on aggregator giant Loan Market Group's (LMG) commercial lending panel.
The partnership, which expands on the duo's existing residential relationship, comes as broker demand for commercial finance continues to gain momentum. It also signals MA Money's intent to broaden its footprint beyond traditional home lending.
"Commercial lending is a key strategic growth area for MA Money," Craig Stuart, head of commercial at MA Money, told Australian Broker. "We have launched a commercial offering that provides brokers and borrowers with flexibility around structure, income verification and loan purpose, while maintaining the service standards, turnaround times and digital experience that have been central to our residential success."
The extended tie-up between aggregator and the non-bank — a division of global alternative asset manager MA Financial — allows LMG brokers to have access to both MA Money's residential and commercial solutions.
Stuart added that demand for commercial lending has "increased significantly over the past two years," thanks to a number of factors.
"Australia continues to see growth in the [small- and medium-sized enterprise] sector, while brokers and borrowers are seeking more flexible funding solutions than those traditionally available through major lenders," the executive explained. "At the same time, more investors are exploring commercial property and self-managed super fund (SMSF) strategies as part of a broader diversification approach."
There are also brokers looking to diversify their income streams amid softer conditions in the residential market, as well as elevated interest rates, persistent cost-of-living pressures and inflation that have tempered activity in the residential lending market. Changing investor preferences are also helping fuel interest in commercial property, particularly as investors weigh the potential impact of proposed tax policy changes affecting negative gearing and holiday homes.
"Investor appetite is certainly one of the factors contributing to increased interest in commercial property finance," Stuart said. "Many investors are looking to diversify their portfolios and explore asset classes beyond traditional residential investment properties. Commercial property can offer attractive yields, longer lease terms and stable tenancy arrangements, depending on the asset type.
"More broadly, whenever there is uncertainty around residential property policy settings, investors tend to explore alternative opportunities," he continued. "Commercial property and SMSF investment strategies have become increasingly popular options for those seeking diversification and long-term wealth creation."
MA Money is maintaining a rapid pace of growth as it expands its market presence. Last December, the firm had logged approximately $600 million that month and surpassed $5 billion in loans under management. Now the non-bank is working towards achieving $1 billion in settlements in a single month.
The firm's growth story also includes the ApplyOnline platform, which it rolled out last August and was meant to help streamline the application process for brokers. In November, MA Money refreshed its product suite with alternative lending options, including the launch of MA Money More, which offers larger loan options, as well as updated alt doc commercial lending.
The non-bank started the year strong by joining the MoneyQuest Group lender panel in January, then sealing the deal in a $1.25 billion residential mortgage-backed security (RMBS) in February. Most recently, MA Money added six new BDMs to its leadership team nationally.
MA Money's commercial products are already available through a number of aggregator partners. But Stuart said adding LMG broadens the lender's reach within the broker channel.
"The addition of LMG further expands access to our commercial solutions and reflects the growing demand we're seeing from brokers for flexible commercial lending options," he explained.
According to Stuart, the expansion builds on the lender's existing relationship with LMG and was "a natural next step." MA Money launched its residential offering through the aggregator roughly a year ago and has since focused on refining its processes, aligning systems and increasing brand awareness across the network.
"With those foundations in place, we're now able to seamlessly extend our commercial offering to LMG brokers," he said.
“Commercial lending is one of the most exciting growth areas for brokers right now," Stuart continued. "My goal is to make it simpler for brokers and their clients, while providing the same consistency, support and personal service that MA Money is known for on the residential side."
Sam Allam, manager, commercial lender partnerships at LMG, added that the addition of MA Money on its commercial lending panel is part of the firm's broader strategy to offer brokers, and their clients, more options.
"Our brokers are looking for more ways to support their clients, particularly as commercial lending becomes a bigger part of the conversation," Allam said. "MA Money's commercial offering is a strong fit for the panel. It comes with flexible solutions, solid service and the added benefit of a seamless experience for brokers who are already working with MA Money on the residential side."
MA Money commercial offering spans a range of property types, including retail shops, office space, light industrial and warehouse assets. The non-bank is also positioning itself as an alternative for brokers and borrowers, offering flexible documentation requirements, loan terms of up to 30 years and SMSF lending with LVRs of up to 80%.
To simplify the process for brokers already familiar with its residential products, Stuart said commercial loan applications can also be submitted through the ApplyOnline platform, providing a consistent experience across both lending segments.
"Our focus over the next 12 to 24 months will be continuing to look for opportunities in our product suite where we can support more borrower scenarios and help brokers meet the growing demand for commercial finance solutions," Stuart said.
"With the continued growth in commercial lending and more brokers recognising the opportunity to diversify their businesses and better support clients, we expect commercial lending to become an increasingly important part of the broker proposition," he continued. "It's not unrealistic to see around half of [all] brokers actively writing commercial business over the coming years as confidence, education and lender support continue to improve."
