Most brokers can't believe how simple vanilla commercial lending can be, and may easily be able add this new income stream to their home loan business, it has been claimed.

Speaking with Australian BrokerNews, Sintex general manager Cathy Dimarchos said even ex-bankers are often surprised by just how easy more simple commercial deals can be to add to the traditional home loan business.

"The trick with commercial is that, if you don't bite into the $20m deals, they are not going to be that
complex. It will be your retail shop, or your hairdresser, or your small medical centre.

"These deals are very basic and you can get them across the line without too much trouble," she said.

Sintex previously opened up distribution to holders of ACLs, expanding outside of wholesale funding. Dimarchos said the response from brokers has been strong.

"It is generally the brokers who are looking to diversify, who want to offer different options and
solutions. It's imperative, particularly in the current market," she said.

Sintex is a funder that only caters for 'vanilla' deals, excluding development and construction.

"If they stick to simple deals, there is about the same amount of work in a commercial deal as in a home loan, and you also often get a home loan on the back of that, which increases your income stream," Dimarchos said.

Dimarchos said it has been "drummed into brokers for years" that commercial was more difficult.

"I'm finding that brokers are now questioning whether it is as difficult as everybody says, particularly as there are more options now other than the banks," she said.

Dimarchos said that while the banks are only offering short-term bill facilities of up to five years,
non-bank lenders can offer long-term facilities. She said while the headline rate may be higher, consumers need to be "enlightened" that there are benefits to sourcing credit through a non-bank.