What are non-bank lenders?
Also known as second-tier lenders or non-retail lenders, non-bank lenders fill an important gap in the market. Most of them mainly just deal with mortgage brokers and have gained a larger market share since the banking industry and the Reserve Bank toughened up on lending criteria.
The more ‘main stream’ non-bank lenders can still be restricted by the maximum LVR limits set by the Reserve Bank as they are often funded by banks, though some are able to do 80% lending on rental properties with certain parameters. Non-bank lenders can be more lenient on how they calculate affordability, or have leniency on adverse credit history and self-employed income proof which makes them a viable option when the bank says no.
In most cases the non-bank lenders will ask for a registered valuation on the security being offered. Whilst they are willing to be more relaxed on the profile of the borrower, they can be strict on the security they are taking on.
Other ways in which non-bank lenders help is open bridging finance, debt consolidation and helping borrowers when they have mortgage arrears.
So if you are having issues with your bank, or feel your situation might be a bit ‘outside the square’, feel free to contact us.