What Are the Non-Bank Lenders Risks?
Australian banks hold the bulk of outstanding mortgages. This makes sense. People feel safe housing their loans where they bank. It also provides a degree of convenience. Plus, the public is most familiar with banks. Therefore, they trust them. Since banks handle their customers’ deposits, they must remain conservative in their lending practices.
Becoming a homeowner in Australia in 2022 has become more difficult and expensive. Thus, many first-time homeowners find that they cannot qualify for a mortgage. That’s where non-bank lenders come into the picture. It’s normal to believe that non-bank lenders pose risks in the lending markets. The unknown always has a degree of fear. However, non-bank lenders provide a second chance for those whose applications received a rejection from banks.
Non-bank lenders have the freedom to take on riskier mortgages. Lenders such as Mortgage House employ innovative tools to balance risk with reward. For example, we help first-time homebuyers become homeowners. Mortgage House offers guarantor and family pledge mortgages that increase the borrower’s power and capacity.
We also work with investors. You can obtain an interest-only home loan for your next purchase. Mortgage House clients also enjoy access to additional products such as our business loan. To see your options, start the application process with our loan specialists.
Non-Bank Lenders Risks Conclusion
It makes sense to worry about obtaining a mortgage through non-bank lenders. However, they pose few risks. Instead, non-bank lenders such as Mortgage House offer several advantages. Contact our loan specialists to start your application today.