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Compare non-bank lender interest rates from 4.44%

Q: Do non-banks only offer loans to people with bad credit?

Not at all — non-bank lenders offer home loans to all walks of life who wanted an alternative option. Non-banks usually have a different set of criteria, which allow applicants, who might have been turned down by a traditional bank, to be qualified for a home loan. However, it is true that most of the time, non-bank lenders are able to accommodate borrowers with low credit score, high debt-to-income ratio or those who are self-employed.

Q: Why do non-banks offer lower interest rates?

Non-banks usually offer more competitive rates than traditional banks to lure in more customers. Given that some operate entirely online, they are able to reduce their costs and provide lower interest rates to potential borrowers.

Q: Are non-banks financially secure?

Yes — similar to traditional banks, non-bank lenders still have to comply with credit rules and regulations. Some non-bank lenders are backed by Australian financial institutions. In the event that a non-bank lender closes, another lender will generally take over its client base. This means that if a non-bank lender goes bust, you will have to still service your mortgage debt under a new lender.

Q: Where do non-banks get funds if they do not offer deposit accounts?

Non-bank lenders often depend on wholesale funds either from Australian banks or international institutions. They can also raise funds by issuing bonds to institutions and investors.

See the lowest interest rates from non-bank lenders that are available in the market.

Loan amount

Compare

Lender	Advertised rate	Comparison rate*	Monthly repayment	Rate Type	Ongoing Fee	Upfront Fees	LVR	as ofFebruary 21, 2023

	5.10^%_p.a.	5.47^%_p.a.	^$2,172	Variable	^$0	^$600	80^%	More details
	Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%) More details
	5.29^%_p.a.	5.29^%_p.a.	^$2,219	Variable	^$0	^$0	60^%	More details
	Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%) More details
	4.44^%_p.a.	4.35^%_p.a.	^$2,013	Variable	^$0	^$0	80^%	More details
FEATUREDREFINANCE ONLY	Variable Rate Home Loan – Refinance Only No application or ongoing fees Annual rate discount Unlimited redraws & additional repayments LVR <80% A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
FEATUREDREFINANCE ONLY Variable Rate Home Loan – Refinance Only No application or ongoing fees Annual rate discount Unlimited redraws & additional repayments LVR <80% A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank. More details
	4.84^%_p.a.	4.76^%_p.a.	^$2,108	Variable	^$0	^$0	80^%	More details
	Variable Home Loan (Principal and Interest)
Variable Home Loan (Principal and Interest) More details
	4.89^%_p.a.	4.96^%_p.a.	^$2,120	Variable	^$395	^$590	60^%	More details
	Ocean Owner Occupied (Amounts < $1m, LVR < 60%)
Ocean Owner Occupied (Amounts < $1m, LVR < 60%) More details
	5.39^%_p.a.	5.39^%_p.a.	^$2,244	Variable	^$0	^$0	80^%	More details
NO UPFRONT OR ONGOING FEES	Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)
NO UPFRONT OR ONGOING FEES Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%) More details

Variable Home Loan (LVR < 70%)

Product Features

Great low rate available for purchases & refinancers
Australian based experienced lending team to help with every step of your home loan journey
Easy online process to find out if you would qualify
In business since 2011 & backed by Australia's largest online lender
No on-going fees, unlimited redraws & offset available for 0.10%

Monthly repayments:$2,111

4.85%Advertised Rate (p.a.)

4.87%Comparison Rate*

More details

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of February 21, 2023.

The rise of non-bank lenders has made the Australian mortgage landscape more competitive, providing borrowers with more options that could help them realise their homeownership dreams. Are you preparing for your first home purchase? Or perhaps you are planning to get an investment property? Here are the things you should know about non-bank lenders in Australia.

What is a non-bank lender?
What do non-bank lenders offer for homebuyers?
What are the advantages of getting a home loan from a non-bank lender?
What are some of the drawbacks when applying to a non-bank lender?
Frequently asked questions about non-bank lenders

What is a non-bank lender?

A non-bank lender is a lender who is not a bank but can provide consumers with different types of loans like home loans, car loans, and credit cards. Non-bank lenders cannot accept consumer deposits (i.e. they can’t offer savings accounts or term deposits) because they do not have an authorized deposit-taking institution (ADI) licence from the Australian Prudential Regulation Authority (APRA), which means its functions are limited to just providing financing.

To provide loans, non-bank lenders self-raise the funds required to provide loans by issuing bonds to investors and institutions. Take note, however, that even though non-bank lenders do not have an ADI license, they must still have an Australian Credit Licence (ACL) and have to comply with the regulations set by the Australian Securities and Investments Commission (ASIC), and other laws such as the National Consumer Credit Protection Laws and the Australian Consumer Law.

What do non-bank lenders offer for homebuyers?

Non-bank lenders in Australia are a popular option among homebuyers who are trying to search for more competitive home loans. Just like banks, non-bank lenders offer owner-occupier and investor loans. However, because non-bank lenders don’t hold an ADI license, they can’t offer offset accounts in the traditional sense, although some non-bank lenders offer products that operate similarly to offset accounts.

Some non-bank lenders offer a wide range of housing loans including low-doc home loans and construction loans. Some non-bank lenders may vent provide line of credit home loans, guarantor loans, and bridging loans.

Advantages of getting a home loan from a non-bank lender

Transacting with a non-bank lender has its slew of benefits. Here are some advantages of getting a home loan from a non-bank lender

These lenders often offer more competitive interest rates than traditional banks given that they borrow their funds at wholesale prices.
Most non-bank lenders have lower ongoing fees. Some do not even charge other costs like setup fees.
Non-bank lenders usually have faster approval and turnaround times compared to traditional banks.
They are widely considered to be a safe and genuine competitor to traditional banks.
Online non-bank lenders can offer more personalised services.
Some non-bank lenders are more willing to lend to higher risk borrowers such as those who are self-employed. They can also be more accommodating of fluctuating credit history.

Disadvantages of using a non-bank lender

While non-bank lenders are a great alternative to traditional banks, there are some setbacks.

Many non-bank lenders do not have a full-suite of loan packages that most banks offer their customers. For instance, non-banks lenders will not be able to offer offset accounts because they don’t have an ADI.
Some non-banks offer limited home loan options and loan types. Others do not provide home loans to property investors.
Non-banks usually have limited physical presence — some do not even have branches, which means all services are done online.

Frequently asked questions about non-bank lenders

Non-bank lenders are not for everybody, but they are gaining traction among many borrowers who want an alternative to the traditional banks. Before you start exploring, here are the answers to the questions you might have about non-bank lenders.

Do non-banks only offer loans to people with bad credit?

Not at all — non-bank lenders offer home loans to all walks of life who wanted an alternative option. Non-banks usually have a different set of criteria, which allow applicants, who might have been turned down by a traditional bank, to be qualified for a home loan.

However, it is true that most of the time, non-bank lenders are able to accommodate borrowers with low credit score, high debt-to-income ratio or those who are self-employed.

Why do non-banks offer lower interest rates?

Non-banks usually offer more competitive rates than traditional banks to lure in more customers. Given that some operate entirely online, they are able to reduce their costs and provide lower interest rates to potential borrowers.

Are non-banks financially secure?

Yes — similar to traditional banks, non-bank lenders still have to comply with credit rules and regulations. Some non-bank lenders are backed by Australian financial institutions. In the event that a non-bank lender closes, another lender will generally take over its client base. This means that if a non-bank lender goes bust, you will have to still service your mortgage debt under a new lender.

Where do non-banks get funds if they do not offer deposit accounts?

Non-bank lenders often depend on wholesale funds either from Australian banks or international institutions. They can also raise funds by issuing bonds to institutions and investors.