Commercial property made surprisingly simple for Dale Zhu with personal support from ANZ

For Melbourne-based residential broker Dale Zhu, partnering with ANZ on his first commercial property deal wasn't just about simple processes and fast approvals - it was also about trust.

Melbourne broker Dale Zhu typically focuses on residential deals, but his ANZ banker recognised his potential for future commercial property deals and took the initiative to introduce Dale to ANZ's commercial lending policies and processes.

It turned out to be good timing - a client of Dale's was looking to buy a commercial property and had just had a poor experience with a tier 1 lender. The lender had made onerous requests for financial statements and had also imposed extensive processing delays. The ordeal left Dale's client frustrated and wary.

"The client had become hesitant about doing another commercial deal," Dale explains.

But then the client eyed an attractive asset in regional Victoria: three shops on one title with leases in place, opposite anchor tenants with high foot traffic. Dale's client wanted to invest.

This time Dale was determined to give his client a great lending experience. Dale approached his ANZ banker to workshop the deal. The ANZ banker helped facilitate Dale's Commercial accreditation and it led to his first ever commercial deal with ANZ.

"ANZ got me conditional approval in just three working days. My client was really happy and everything was low stress for me," Dale says.

What's more, the deal ANZ provided was very sharp.

"ANZ approved the loan with a 65% loan to valuation ratio and a 1.5 interest coverage ratio. The client was very happy because they were offered a low interest rate - the lowest rate in the market," according to Dale.

"The loan was interest only and ANZ aligned the term with the average of the lease periods."

This made it easy for Dale's clients to use rental income to service the loan.

"Financing through ANZ went so smoothly - it really rebuilt my client's confidence, not just in the process, but also in me as their broker. They told me they'd be happy to come back for future deals, and they'll be referring their friends to me. That speaks to the level of trust that was built through the experience," Dale explains.

A door opener to more deals

For Dale, obtaining commercial accreditation with ANZ and completing his first ever commercial deal has been good for business.

"It's a chance to work on bigger deals in a larger market. The investment opportunities in commercial can be very strong. It's a really good opportunity for me."

"Also many of my residential clients are self-employed and have an appetite for commercial property, both as an investment and for business purposes, such as a warehouse."

For Dale, market dynamics have increased the allure of commercial broking.

"Residential broking is becoming saturated, whereas in commercial broking there's greater scope to demonstrate your knowledge and experience. A strong relationship with your bank can help you differentiate."

Dale's relationship with ANZ has given him an edge, particularly when a commercial property is leased.

"Speed matters. For commercial property investors, the time it takes for approval can mean the difference between seizing a unique opportunity, or missing out."

"The biggest benefit is that ANZ lets me keep things tight and simple for my client. If the lease stacks up, I don't have to pull out the client's whole financials. The focus is on the rent and the security itself. That's it."

"Credit gets approved quickly without the back and forth. Communication is very clear and ANZ's credit team is quite approachable," Dale adds.

Personal support at every step

The support Dale received from his ANZ banker helped drive a great experience for Dale and his client.

"My ANZ banker has been really great to work with - very knowledgeable, clear, reliable and always responsive. Having that kind of support makes a big difference. They organised for me to meet the credit team face-to-face, and clearly explained ANZ's products, giving me the confidence to take on more opportunities. Working with ANZ is simple and easy. ANZ understand brokers and respect the relationship."

Commercial broking made easy for resi brokers

Dale has some advice for residential brokers who might be considering increasing their stake in the commercial market.

"Look for a good partnership with a banker who's willing to guide you, help you solve problems efficiently, treats you like a true partner and builds trust."

Dale also suggests starting with commercial property that's backed by a lease.

"Financing lease doc is just simple. If the security is acceptable to ANZ, then the focus is simply on the rent servicing the loan. That's it. So for a residential broker, it's a really easy way to jump into commercial."

According to Dale, ANZ's commercial accreditation and onboarding process is "quite simple and easy".