Navigating commercial lending: Key insights for HNWIs and families

High-net-worth individuals (HNWIs) and families often have complex financial strategies and multiple business interests.

- Andrew Hewison, managing director, Hewison & Associates

However, they’re usually time-poor, with competing priorities. While they expect high service levels, many also remain loyal to their existing banking relationships, which can sometimes work against them when it comes to commercial lending. Here are some key considerations.

1. Banks change their lending appetite frequently

A key challenge in commercial lending is the ever-shifting appetite of banks. Financial institutions constantly tweak their willingness to finance certain asset classes or locations. For example, a bank might offer a higher loan-to-value ratio (LVR) on a commercial property in one suburb but take a far more conservative stance in another. Similarly, lending terms, including interest rates, can change significantly over just six months, depending on the makeup of the bank's loan book and its risk exposure.

2. It's not just about the headline interest rate