The non-major bank has released “set and forget” mortgages for business owners and investors looking to buy or refinance commercial property up to $10 million.
Gateway Bank has launched Commercial Loan Products for the Broker Channel, offering accredited Gateway Brokers access to two loan products: Commercial Real Estate Loans between $250,000 and $4 million, and Commercial Loans Plus for those who want to borrow between $4 million and $10 million.
Both loans can be used to purchase, refinance, or invest in commercial real estate such as retail businesses, commercial offices, industrial units, warehouses, and factories.
The two new Gateway products offer both variable and fixed rate terms, flexible loan options, principal and interest repayments for up to 20 years, interest-only repayments for up to five years, and options free withdrawal.
Commercial real estate loans start from 3.44% per annum (up to 70% loan to value ratio [LVR]) and commercial plus loans start from 3.69% (up to 65% LVR).
Speaking to The Adviser about the commercial launch, Gateway Bank chief executive Lexi Airey said the new products were driven by demand and as part of the bank’s diversification strategy.
“We have been looking at the different needs of clients and the different needs of brokers for a few years, and [have been] consider diversifying what we do. We’ve had the monthly IMT, we’ve had the green loans, we’ve had the reverse mortgages, so it just meets more needs and diversifies what we do,” she told The Adviser.
Zeb Drummond, head of client operations at Gateway Bank, said the products could suit a range of borrowers, including SMEs looking to become landlord tenants or investors looking to diversify their portfolio.
He added: “From a broker’s perspective, I think these products are for brokers who may not be able to‘I also don’t have a long history of business writing.
“We‘I try to fill this space where there is‘It’s this unknown, and a bit of this fear. I think we can definitely help them from an education perspective and hold their hand through writing their first commercial setup.
Gateway Bank said the fact that both mortgage products come with a “streamlined process and no annual review” helps eliminate a “major pain point” for business owners, commercial investors and their brokers.
“We want to convey a sense of confidence to our brokerage partners (as well as their underlying clients) to know that once you have a setup with the organization, we‘it’s good for that. We want to make sure they‘have dedicated time and energy to their business or the things that really matter to them [rather than] going through an annual review which I think we can all agree for the actual business adds very little value,said Gateway Bank.
Ms Airey noted that Gateway has partnered with NextGen to use its ApplyOnline trading platform to ensure “a simple and streamlined process” for brokers depositing the loans.
“We set out to design a simple and compelling solution for brokers, especially those looking to diversify their customer base and get started in the commercial borrowing space,” Ms. Airey said.
“Our fully digital process through the streamlined application framework makes it easy and ensures the most accurate information and required documentation is captured at the point of sale.
“Once the loan is approved, the broker and their client have the peace of mind of not having to go through a cumbersome administrative process every 12 months.”
She added: “The fully digital ApplyOnline Commercial process removes the need for paper forms,” which she says “fits perfectly with Gateway’s environmental focus, to take care of Australians’ pockets and the planet.
“It’s key to everything we do.”
[Related: Bank offers cash to green loan borrowers]