Australian Broker's Spotlight Series is back, shining a light on the top talent shaping Australia’s finance and broking sectors.
In a second installment, we reconnected with Andrew Torrington (pictured above left) — co-founder, managing director and chief investment officer at Melbourne-based private credit firm Woodbridge Capital — for his thoughts on today's market.
With recent interest rate hikes, and the potential for more at the Reserve Bank of Australia's (RBA) upcoming March meeting, in addition to geopolitical conflicts abroad, navigating volatile times is top of mind for market participants.
Torrington, who has more than three decades of experience in Australia's financial sector, weighs in on market trends, commercial finance and strategies brokers can use to stay ahead of the curve.
The following interview has been edited for grammar and clarity.
AT: As commercial lending accelerates, borrowers must be confident their lender can deliver, not just approve. Practical due diligence means understanding where the lender’s capital comes from, who makes credit decisions and how quickly they can respond when issues arise. Borrowers should ask how variations are handled, how drawdowns work and what happens if a project runs late or costs increase. A lender who understands real-world property challenges will be far more valuable than one offering headline pricing without practical support.
AT: As we move further into 2026, borrower activity has become more selective, but more realistic. Borrowers are better adjusted to higher interest rates and are structuring transactions accordingly. We’re seeing increased refinancing, stabilisation and transitional activity rather than speculative growth. Compared to a year ago, there’s more clarity and fewer unrealistic assumptions. That’s a positive development. Markets work best when borrowers and lenders share a grounded view of risk, pricing and execution.
AT: In volatile conditions, borrowers should prioritise flexibility and resilience. That means conservative leverage, realistic cash flow assumptions and lenders who can adapt if conditions shift. Planning for downside is no longer optional.
Borrowers who build buffers into their structures and work with lenders who understand real-world property risk are better positioned to manage uncertainty. The focus should be on sustainability, not optimisation. Those who take a disciplined approach now will be better placed when conditions improve.
AT: Clear communication from day one is essential. Borrowers should be upfront about timelines, risks and sensitivities, while lenders should respond with realistic structures and transparent terms. The best outcomes occur when all parties align early on expectations and constraints.
Good lenders don’t just provide capital; they help borrowers think through execution, contingencies and exits. Strong relationships are built on honesty, not optimism. When challenges arise, that foundation makes resolution far easier.
AT: We’re seeing strong demand for refinancing, repositioning or completion of transitional assets. Borrowers are prioritising certainty, speed and lender capability over aggressive leverage. There’s also increased focus on lender behaviour post-settlement, not just at approval. Borrowers want partners who remain engaged throughout the loan term. That shift reflects a more mature private credit market where execution and reliability matter just as much as pricing.
