When it comes to getting a home loan, most people go straight to their bank. It’s understandable – banks are usually the most convenient option and can help most Aussies with their home loan needs. But if you want more support and flexibility in your mortgage options, or you have been declined a loan from the banks, non-bank lenders may be the answer for you.
What is the difference between a major lender and a non-bank lender?
Non-bank lenders are financial institutions that provide home loans without being part of an actual banking system. They offer some unique advantages over traditional banking methods, such as having more flexible credit criteria and non-conforming loan products tailored specifically to those who don’t fit into the standard lending guidelines of major banks.
Major lenders are typically bigger institutions, such as the big fours in Australia. They tend to have more strict lending criteria due to their larger size and scope of operations. Major lenders also tend to be more conservative with their loan products than non-bank lenders, providing shorter repayment terms and higher interest rates in some cases.
What is the right option?
When choosing between non-bank and major lenders, it is important to consider your financial situation and determine which option best suits your needs. While non-bank lenders may offer more flexible loan products, they can also be a riskier choice due to their non-standard lending criteria. Major lenders can provide more security but may not have the same flexibility as non-bank lenders. Ultimately, the decision you make comes down to weighing up the pros and cons of both options and considering what’s right for you. It’s always recommended that you speak with a qualified mortgage broker who can provide expert advice about different home loan options available.
With the right knowledge and advice, you’ll be able to find a lender that meets your needs and helps you achieve your goal of home ownership.
Get in touch with us today to explore your options. We work with both major and non-bank lenders and can provide solutions to suit your situation.