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Why choose a non-bank lender?

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It’s no secret that non-banks have gained major popularity over the years. Flexible lending criteria, specialised loan products and fast turnarounds have made them particularly appealing for borrowers seeking finance outside the big four. Even with housing values rising across most Australian capital cities, tightened lending standards have made it difficult for many to access finance through the big banks.

Here we look at the opportunities non-bank lenders present for buyers.

What do we mean by a non-bank lender?

Quite simply, a non-bank lender is a lender that isn’t a bank, building society or credit union.

Like a bank, non-bank lenders still have strict licensing requirements they must adhere to and both options are heavily regulated in Australia. In general, non-banks still require an Australian Credit Licence and must adhere to the requirements set out by the Australian Securities and Investments Commission (ASIC).

Whether you opt for a bank or non-bank lender, you can trust that both options are safe, well-regulated and secure.  

Why are non-bank lenders rising in popularity?

One of the main differences between banks and non-banks is that banks can offer a full range of banking products (like savings or checking accounts). But remember, offering a ‘one stop shop’ for all your financing needs works in the bank’s favour. If they can group together a broad range of financial services under one roof, clients are less likely to seek out alternate, more competitive funding solutions elsewhere.

On the other hand, non-banks tend to offer more flexibility in their lending criteria and more specialised loan products. Your age, credit score and whether or not you’re self-employed will all affect the funding banks can provide. Lending on a strict debt-to-income ratio, banks are often restricted in what they can offer their clients.

With no credit checks or maximum age limits, Property Credit offers asset-backed finance meaning the amount you can borrow is dependent on the equity in your home.

Faster turn arounds

Subject to receiving all necessary documentation, Property Credit can offer finance in as little as a few hours. Being able to submit applications online makes for a more streamlined, convenient process. Again, banks are restricted to certain lending protocols, so you can generally expect a lengthier loan process.

Personalised service

Smaller, in-house customer service teams mean you’re more likely to receive service that’s personalised. You can reach the Property Credit team Monday to Friday on 1300 829 536 for genuine, one-on-one service or reach us via our online chat.

Flexibility

Because non-banks are privately owned, they can often be accommodating of personal circumstances and scenarios. Loan products also tend to be specialised, so non-banks can be more flexible in meeting your requirements.

Unlike many traditional banks that simply put their clients in a ‘box’, Property Credit assesses each client’s situation individually. We’re forward-thinking in how we approach every application, because we understand that no two scenarios are ever the same.

Visit property.credit for more information on our services or you can contact us on 1300 829 536 (au) or 03 668 2144 (nz).

This article is for general information purposes only and is not intended as financial product advice. Consider seeking independent financial advice that relates to your individual circumstances.

Buy and sell property on your terms

There's so much to consider when buying or selling. Below are just some of the opportunities equity release can offer over the course of a property sale. 

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