Technology is supposed to make things faster. Portals, digital uploads, instant communications. We’re meant to be living in an age of quick decisions and efficient processes. So why does it feel like commercial property finance has gone backwards?
I’m several weeks into a deal right now that perfectly illustrates what’s broken. And it’s got me thinking about how different things were 20 years ago when I worked lender side.
The two-stage underwriting problem
Here’s what happened. I submitted a commercial property finance deal to a lender. I got back a checklist of items they needed. Fair enough, that’s normal. I spent two weeks gathering everything, making sure it was all perfect and submitted the lot. Then I got another checklist with even more items on it and things that weren’t relevant to the paperwork I’d already provided.
When I queried this, the response was enlightening. “Oh yeah, we don’t underwrite it initially on day one. We just look at it from a high-level point of view. We only underwrite it properly when the paperwork comes in.” Let me be clear about what this means. I’m now several weeks into a deal, thinking I’d provided everything the lender needed, only to discover they hadn’t actually looked at it properly. Now I’ve got to go back to the client for additional information because the lender didn’t do their job properly the first time.
How we used to do things
Twenty years ago, when I worked lender side, the process was completely different. We’d review the whole pack properly from day one. Then we’d come back to the broker or client with a comprehensive checklist of everything outstanding. Once all those items were satisfied, the deal was complete. This meant speedy completions. It meant everyone knew where they stood. It meant clients weren’t kept hanging around while lenders drip fed their requirements.
The technology paradox
What’s particularly frustrating is that we’re using better technology now: portal uploads, digital document management, instant messaging, etc., so everything should be faster and more efficient. Instead, we’re relying on technology to mask the fact that we’re using less experienced people and cutting corners on proper underwriting. The portal gives the illusion of progress while hiding the reality that nobody’s actually doing the work properly until much later in the process. This isn’t just inefficiency; it’s poor service dressed up as modern practice.
The real question is: are we all pulling in the right direction together? Who’s really in control here?
There’s a broader issue at play. Over the last few years, there’s been too much of a power shift toward lenders. Here’s the thing: both brokers and lenders work for clients. When the client is ready to move and expects us to jump, that’s when we need to move. When the client isn’t ready, we need to be respectful of that.
It should be a balance of mutual respect. Lenders need to lend to good borrowers who are going to repay them with interest. But they also need to remember they’re providing a service. They should be acting in the best interests of not only their own funding line, lending prudently and getting their money back, but also ensuring they’re satisfying the client from a service point of view. Many lenders make the right noises about service standards, but then the reality disappoints. Why the gap between what’s promised and what’s delivered?
What needs to change
The standards across commercial property finance, development funding and bridging loans have gone backwards over the last 20 years. But here’s the positive side: we can fix this. First, lenders need to do proper underwriting from day one. If you’re going to ask for information, look at it properly. Don’t just tick a box and move on. Review it comprehensively and tell the broker everything you need in one go.
Second, stop hiding behind technology and process. Portals are tools, not substitutes for experienced underwriters who know what they’re doing. Third, remember that this is a service industry. You’re not doing clients a favour by lending to them. They’re good borrowers with solid projects who could probably get funding elsewhere. Treat them accordingly.
Here’s something positive I’m seeing: there are not enough risk and recovery experts at lenders right now, but historically in negative markets, lenders employ those types of people. Why can’t we be consistent with this approach? If we maintained those standards and expertise through both high and low markets, we’d ride out market cycles far more effectively. That’s the opportunity we’re missing.
Finally, let’s restore some balance to the lender-borrower relationship. It’s not about lenders controlling everything. It’s about mutual respect, proper communication, and both parties working toward the same goal.
The broker question nobody’s asking
It’s not just lenders. There are varying standards among brokers too. I work on the basis of: would I lend my money to these customers? I’m not after a quick pay cheque. I’m after long-term relationships with customers who come back time and time again because they value my experience and service and because I can help them make more money, from which I’ll benefit too.
I work on that basis because good customers are hard to find. So we should be looking after them, not making them run a marathon before we lend them money. When you find solid borrowers with good projects, why would you make their lives harder than necessary?
Why this matters for property professionals
If you’re a property investor or developer reading this, you need to understand that the delays you’re experiencing aren’t always inevitable. Sometimes they’re the result of poor processes that could be avoided with proper service standards. Ask your broker what’s really causing delays. Is it genuine complexity in your deal? Or is it a lender who’s drip feeding requirements because they didn’t do their job properly from the start?
Good brokers know which lenders still operate to proper standards. They know who does comprehensive underwriting from day one and who’s just going through the motions. They know which lenders respect their clients’ time and which ones think they’re doing you a favour. In a market where timelines matter and cash flow is critical; you can’t afford to work with lenders who waste weeks of your time because they couldn’t be bothered to review your paperwork properly.
The bottom line
I’ve been in this industry for 38 years. I’ve seen it from every angle as a lender, as a property investor and now as a broker. And I can tell you: we’ve gone backwards. Technology hasn’t made us better. It’s just made us faster at being mediocre.
But here’s what gives me hope: the conversations I’m having with CEOs of lenders and valuers confirm they see the same issues. They know the standards need to improve. The market is tough, but we’re not helping ourselves by being inefficient. If we all pulled in the right direction together, if we maintained consistent standards through market ups and downs, we’d all be in a stronger position.
The industry will improve when we stop making excuses and start demanding better. From lenders, from brokers, from ourselves. Because your time matters. Your project matters. And you deserve better than a system that’s gone backwards while pretending to move forward.
The opportunity is there. We just need to take it.
Dave Symondson MCIOB is Chief Funding Advisor at DevBrok with 38+ years across lending, commercial property investment and broking. He helps SME property investors solve complex funding challenges across commercial property finance, bridging loans and development funding, whilst calling out poor industry standards. Dave co-founded Rise Up to help contractors transition into property development.