Thinktank exceeds $ 1 billion in loan settlements in fiscal 21
Real estate and commercial lender Thinktank is celebrating after recording $ 1 billion in loans settled in the last fiscal year.
This number is a third higher than the previous year and represents a justification for Thinktank’s strategy of moving away only from loans to SMEs and businesses and towards the residential space.
âConsidering that the ubiquitous factor over the past 12 months has been the COVID-19 pandemic and the impact it continues to have intermittently on economic, business and social activity, this is a exceptional result, âsaid CEO Jonathan Street.
âThis is a testament to the constantly evolving nature of Thinktank as a business and our genuine concern for building trusting and lasting relationships between all of our brokers, aggregators and stakeholders and institutional partners. “
âAs a result, we have continued to constantly develop our designs and our distribution relationships continue to grow, both in terms of size and effect. “
The results would surprise anyone who saw the market and the economy at the start of the fiscal year, as Australia still recovered from the first wave of the pandemic.
âI think it’s fair to say that 12 months ago, as Covid’s grip tightened and with borrower struggles supporting at high levels, none of us really believed a billion dollars was a likely prospect, âStreet said.
âAnd yet, while commercial credit activity initially fell by around 50%, it was more than offset by the resumption of residential and SMSF credit.
“It’s also fair to say that the performance of the residential market, especially when you think back to the comments at the time, surprised just about everyone.”
âWhile the commercial real estate market has generally recovered well since then, individual market segments such as industrial have remained strong throughout and have far exceeded upside expectations. “
“While the reintroduction of widespread lockdowns creates new challenges for borrowers, businesses, lenders and the real estate markets, we remain confident about the outlook for the period ahead and look forward to another record year.”
âCompetition from lenders is particularly strong, which is great for borrowers and brokers, as interest rates are now likely to stay at their lowest for longer. The impacts of Covid will subside over time and this should unlock a sustained period of strength in jobs, the economy and real estate markets. “