Beyond the Banks: Non-Bank Lending Explained.

When Would You Need a Non-Bank Lender?

The traditional path through major banks isn’t always accessible to everyone. You might consider a non-bank lender if:

• You’re recently self-employed with a strong business but lacking the 2+ years of financial records banks typically require
  
• Your income structure is non-traditional (contract work, commissions, or multiple income streams)
  
• You have a strong equity position but don’t meet standard bank servicing criteria
  
• You need to consolidate existing debts to improve your financial position
  
• You require bridging finance while selling one property and purchasing another
  
• You’ve experienced past credit issues but have since stabilised your finances
  
• You’re developing property and need more flexible construction lending terms
  
• You require a faster approval process than banks can currently provide
  

Why Choose a Non-Bank Lender?

Non-bank lenders offer several distinct advantages worth considering:

1. Greater flexibility in assessment criteria: They can consider applications that might fall outside standard bank policies.
   

1. Customised lending solutions: They often provide bespoke loans tailored to specific situations rather than one-size-fits-all products.
   

1. Faster approval timeframes: With streamlined processes, approvals can often be secured within days rather than weeks.
   

1. Construction and development lending expertise: Many non-bank lenders specialise in property development financing with fewer pre-sale requirements and more flexible terms.
   
2. Temporary solution with refinancing potential: A non-bank loan can be a strategic stepping stone, with the option to refinance to a mainstream bank after 6-24 months once your situation has improved.
   

It’s important to note that while interest rates with non-bank lenders are typically higher than major banks, the difference has narrowed considerably in recent years, making them increasingly competitive.

How a Mortgage Adviser Can Help

As Mortgage Adviser’s, our role extends beyond simply connecting you with a mainstream bank. Here are four ways working with a Mortgage Adviser can help you secure finance for your situation.

1. Comprehensive market knowledge: We maintain relationships with multiple non-bank lenders, understanding their changing policies, appetites and specialisations.
   

1. Strategic assessment: We can evaluate whether a non-bank solution is appropriate for your specific circumstances, or if alternative approaches might better serve your long-term financial goals.
   

1. Long-term planning: If you end up going with a non-bank lender, we’ll develop a clear pathway for potentially transitioning to mainstream bank financing as soon as circumstances permit.
   

1. Ongoing support: The relationship doesn’t end at settlement - we continue working with you to optimise your lending position as your situation evolves.
   

In today’s lending environment, having access to the full spectrum of financing options - including quality non-bank lenders, can be the difference between achieving your property goals and missing out on opportunities.

If you’re currently facing challenges with traditional bank financing, or simply want to explore all available options for your next property purchase or refinance, feel free to reach out to discuss how the non-bank sector might help with your financial strategy.