The Australian banking industry used to be dominated by banks. But the mortgage and finance sectors have become increasingly competitive. Homebuyers now have more options to choose from when it comes to home loans, rates, and features, and one of these alternatives is non-bank lenders.
What Are Non-Bank Lenders?
Non-bank lenders are alternative lenders that are privately owned and operated. They refer to financial institutions that offer home loan products and other typical bank-related lending services. These include basic and superior non-bank home loans, low doc loans, line of credit loans, reverse mortgages, and bad credit loans.
In addition, non-bank lenders have their own source of wholesale funds, and they lend those funds out with an added margin. Insurance companies, mortgage brokers, mortgage originators, and investment banks are some of them.
What Are the Benefits of Choosing a Non-Bank Lender?
There are several benefits of choosing a non-bank lender over a bank, credit union, or building society. Here are some of them:
Lower deposits
Residential properties are expensive. Most of the time, the only way to afford them is to get a home loan. In Australia, the average home loan for first-time buyers is 345,000 dollars, while 406,000 dollars for non-first time buyers.
Regardless of whether you are buying your home for the first time or not, you might be worried about being required to pay a 20 per cent deposit. By opting for a top non-bank lender, you can secure a home loan requiring a deposit for as low as five per cent.
Generous rates
Non-bank funding is known for its highly personalised customer experience and customised loan structures. This is because non-bank lenders are privately owned, which means they have greater flexibility than banks on how they can remain competitive by lowering their rates. By reaching out to a non-bank lender, you are likely to find a loan with attractive rates and fees.
Less restrictive criteria
Many borrowers and aspiring homeowners are concerned about their less than ideal credit when securing a loan. Fortunately, by choosing a non-bank lender, you have increased chances of getting a home loan approved because they often have less restrictive financial criteria for applicants.
Self-employed friendly
For self-employed individuals, getting a home loan from banks might be more challenging. They usually have strict credit history and earning requirements to prove that you are financially capable of paying it off. With a non-bank loan, you don’t have to worry about that because non-bank lenders offer home loans to self-employed borrowers, even if traditional banks might have rejected them.
Fast application process
For most traditional financial institutions, the loan application process takes weeks or even months. Non-bank lenders, on the other hand, are usually much quicker. Your application will be reviewed almost immediately. This means you can get fast access to the funds you need in just a matter of days.
Conclusion
Getting a home loan can help you meet your financial needs. Securing one can be tricky, especially if you are struggling with your finances. Fortunately, there are now alternative lending solutions available to give you access to your much-needed money. Just make sure you reach out to a trusted non-bank lender like us.
Wealthy You is a mortgage company consisting of professional non-bank lenders in Sydney. Since 2015, we have been offering financial and mortgage solutions that meet our clients’ needs. Secure your new home today by getting in touch with us!
