Rate Money is making moves into the commercial property sector.
After a soft launch earlier this year, and the addition of a few new hires, the Australian non-bank lender is now offering new commercial lending products in an attempt to capitalize on the growing commercial market, which was once dominated by traditional banks.
Ryan Gair, Rate Money co-founder and chief executive officer, called the commercial property sector "a significant opportunity."
“We are seeing real appetite from accountants, real estate agents, developers, mortgage brokers and direct self-employed customers who are actively seeking alternative investment opportunities and wealth-building strategies," Gair said. "By expanding into commercial loans, we are positioning ourselves to meet this increasing demand with tailored solutions."
Gair said that the new commercial lending arm of Rate Money will benefit brokers by way of expanded service offerings, and subsequently an expanded client list. "By incorporating commercial property lending solutions, franchisees can retain more customers, strengthen existing referral relationships and create new opportunities for business growth," he said.
He cited data from the Mortgage and Finance Association of Australia (MFAA), which revealed that by the end of 2024, the value of Australian commercial loans written by mortgage brokers grew more than 23% to $91 billion.
For Rate Money, the expansion also means the addition of New South Wales-based Mebin Babu, who was hired in January as the firm's commercial lending manager. The same month, Victoria-based Reshma Rahman, who has been with Rate Money since 2022, was made national business development manager. Both Babu and Rahman are in charge of all three states where Rate Money currently has franchisee offices: New South Wales, Victoria and Queensland.
Rate Money's list of new commercial loan options includes alternative and full document loans up to $8 million, off-the-plan purchases, vacant land loans, cash-out options and SMSF loans.
The Sydney-headquartered Rate Money was founded in 2019 by Gair, Glenn Maynard and Luke Sheales. The firm specializes in loans for self-employed individuals, including residential home loans, investment property loans, construction loans, refinancing and self-managed super fund (SMSF) loans.
In February, the non-bank lender revealed that it had exceeded $10 billion in loans, and was planning to surpass the $13 billion mark by the end of the year. Rate Money also said it plans to open more than 50 locations before 2025 is out, with the addition of new offices in South Australia. The non-bank lender also said it was rolling out a new CRM, updated training and compliance methods and an expanded marketing strategy throughout the year.
