Choosing a Non-Bank Lender vs. Banks for Home Loanssupport
Borrowing from a bank has become the standardised method for home loans. However, did you know there are competitive options such as non-bank lenders in the mortgage market that can provide you the finances you need without the limitations of borrowing from the Big 4? As a property investor, you can grow your investment portfolio far greater and faster with a non-bank lender, with quicker turn around times and less red tape.
What is a Non-Bank Lender?
A non-bank lender is a financial institution offering a range of loans but is not classified as an authorised deposit-taking institution (also known as, ADI). Therefore, non-bank lenders are not able to accept deposits from their clients. The majority of non-bank lenders are privately owned and are governed by the Australian Securities and Investments Commission (ASIC) to ensure compliancy within the business.
Benefits of Choosing a Non-Bank Lender
Non-banks have the upper hand in comparison to banks when considering:
Non-Bank lenders can still offer competitive and flexible interest rates in comparison to banks due to the size of the institution and decreased overheads.
Banks may take weeks to assess and approve your loan. Going through a non-bank lender means there are less hoops to jump through and you can settle in days.
More Solutions and Flexibility in Scenarios
You deal less with the constraints and structure of the banks when choosing a non-bank lender for your home loan. Bad credit scores servicing and other specific scenarios where banks have declined to proceed, non-bank lenders can offer tailored solutions.
Better Customer Service
You deal directly with the lender, streamlining the process and have a point of contact for your queries and concerns. Many customers value this over the security of a bank.
Are Non-Bank Lenders Safe?
Though smaller in size, a common myth of non-bank lenders is that they are
riskier than settling with banks. However, the numbers prove this is false and that non-bank lenders have been growing in popularity due to their advantages over the banks. In recent years, there has been a prominent increase in the demand
for home loans through non-bank lenders.
Not to mention, non-bank lenders must comply with the current policies and regulations of the ASIC.
Though with any financial decision you make, it is crucial to research carefully amongst the options for non-bank lenders, their services, rates, credentials and licenses.
Pacific 8 – Leading Non-Bank Lender
Pacific 8 consider the following mortgage loans: 1st registered, 2nd registered, unregistered mortgages, Caveat loans, Equity loans – all being secured over residential, commercial, retail and/or industrial real estate assets. We are compliant and operate under an Australian Financial Service Licence. If you a looking for a straightforward and streamlined process for a loan today, book in a consultation with Pacific 8 today.