Brokers shift focus to commercial lending opportunities

In this episode of Broker Business, host Rex Afrasiabi sits down with Jasmeet Singh from Absolute Financial to unpack the growing opportunity in commercial lending. While residential broking is nearing saturation with around 80% market penetration, commercial finance remains largely untapped, with only 40% to 45% of deals going through brokers—despite booming annual growth of up to 30%.

As compliance pressures rise in residential lending, more brokers are diversifying into commercial deals. But the shift is not without its challenges. Unlike the formula-driven residential space, commercial lending is highly nuanced—requiring deep analysis of business performance, asset value, and long-term viability.

Practical advice

Deals can take months, even up to a year, but the payoff can be significant, with fewer deals needed to generate the same revenue.

From childcare centres and medical facilities to asset finance and development funding, Singh highlights where the real opportunities lie. He also shares practical advice for brokers looking to break into the space—start small, partner with experienced professionals, and tap into your existing client base to uncover hidden commercial opportunities.