15 Feb 2022

What Is a Non-Bank Loan?

Non-Bank Loan Details

A loan issued by a non-bank lender does not differ in its components from a loan issued by a banking institution, credit union, or lending society. However, a non-bank loan can offer more competitive terms than banks. 

Loans from non-banks have a principal and interest rate. The principal is the amount that the home buyer needs to buy the property based on its value. Some homebuyers qualify for 100% financing or a 100% loan-to-value ratio. Others place a 20% deposit. Therefore, they only require the remaining 80%. Some home buyers only qualify for 60% financing. Those who provide a guarantor can receive up to 110%.

All mortgages have upfront fees attached to them. For example, lenders charge a fee to start the application process. These fees cover the administrative work that takes place behind the scenes. Mortgage House offers a no-fee mortgage for those interested.

Where banks and non-bank lenders diverge is in their terms. Non-bank lenders such as Mortgage House can provide competitive rates to well-qualified homebuyers. We can match the terms offered by banks. Plus, we offer loan terms to individuals who do not qualify for a conventional mortgage. 

Try our mortgage calculator for free.

Non-Bank Loan Details Conclusion

A non-bank loan doesn’t have structural differences from those issued by a bank. Instead, they offer more competitive terms in many cases. To gather more information, speak with our Mortgage House loan specialists. They remain ready to help.

Fast track your home loan
Apply Online Book a Call Back
133 144

Why Choose Mortgage House?

Award Winning