What Is a Non-Bank Lender?
Several lending institution types exist in Australia. Banks remain the most common mortgage lenders. In addition, homebuyers can borrow from credit unions, lending societies, and non-bank lenders. A non-bank lender has distinguishing factors that differentiate it from banks.
No Customer Deposits. A bank accepts customer deposits and issues loans to them. A non-bank lender does not accept customer deposits. Instead, they engage in lending loans. Asset liquidity is important for banks. If the public believes that they cannot access their savings, it is a recipe for mass panic.
Since Mortgage House does not accept customer deposits, our focus remains on procuring competitive loan terms for applicants.
Credit Card Operations. Credit cards act as a debt instrument. Since credit cards are not deposits, non-bank lenders can engage in credit card operations.
More Freedom. Since non-bank lenders do not accept customer deposits, they operate under a different set of financial regulations. An institution such as Mortgage House does not risk losing liquidity. Plus, we remain a privately-owned organisation. Thus, our loyalty remains to our customers.
Mortgage House offers an array of loan products to a range of clients. We work with first-time homebuyers, owner-builders, and investors. Our team offers interest-only mortgages, family pledge home loans, and relocation mortgages. Plus, they have several features such as a redraw facility, early repayment, and variable rates.
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Non-Bank Lender Characteristics Conclusion
Mortgage House is a non-bank lender. We opened our doors in 1986 and continue expanding our operation with new branch locations. To obtain competitive mortgage terms, contact our loan specialists today.