As the Head of Third Party Relationships at Marketplace Finance, Dino Pacella knows the intricate workings of the mortgage broker industry like the back of his hand. With an extensive background in the financial sector, Dino is on a mission to encourage mortgage brokers to explore the uncharted waters of commercial lending. In a candid conversation, Dino highlighted the untapped potential that many mortgage brokers are yet to explore.
“Commercial lending isn’t just another facet of finance; it’s a world of opportunities waiting to be explored,” Dino states. He emphasises that diversifying one’s portfolio with commercial lending can yield substantial benefits. Mortgage brokers who limit themselves to residential lending might be missing out on a substantial market.
Dino acknowledges that venturing into commercial lending opens doors to an entirely new client base. “It’s not just about office buildings and warehouses,” he points out. “It’s about entrepreneurs, business owners, and investors with diverse financing needs.“
When asked about the financial incentives, Dino leans in with a grin. “Commercial deals often involve larger loan amounts,” he shares. “This naturally translates to more substantial commissions for brokers.” Dino firmly believes that brokers can take their revenue to new heights by embracing commercial lending.
The world of commercial lending is incredibly diverse, and Dino sees this as a golden opportunity. “Brokers can carve out their niches in sectors such as healthcare, hospitality, or industrial real estate,” he explains. By specialising in specific areas, brokers can differentiate themselves and cater to niche clients with specialised needs.
Dino does not sugar-coat the transition. “It’s not without its challenges,” he concedes. “Commercial lending is often more intricate, involves extensive documentation, and requires rigorous due diligence.” However, Dino is quick to offer a solution.
“Educate and collaborate,” he advises. “Invest in your education in commercial lending, partner with experts, and master the art of underwriting. These are the pillars that can make this transition a success.“
In closing, Dino is adamant that staying exclusively in the residential lending comfort zone is a missed opportunity. “The challenges may seem daunting at first, but the rewards are worth the effort” he asserts. He believes that with the right education, support, and mindset, mortgage brokers can unlock the vast potential of commercial lending.
