12 Oct 2021

Why Should I Borrow From a Non-Bank?

non-bank lender

Non-bank lenders, such as Mortgage House, are becoming increasingly popular among Australian home buyers. But what classifies a non-bank lender, and what are the benefits of using one?

Basics of a Non-Bank Lender

Non-banks are a type of financial institution that does not have an authorised deposit-taking license. Essentially, they can do most of the same functions a traditional bank can, but they cannot take deposits from customers. While they are unable to accept deposits, they can offer lending products and financial products, such as home loans, car loans, and credit cards. In addition, the interest rates offered on these products may be more competitive than those offered by traditional banks.

Benefits and Disadvantages of Using a Non-Bank Lender

Before deciding if a non-bank lender is the right option for you, you need to consider the following benefits and disadvantages. 

  • Non-banks are often specialist lenders, meaning they can help individuals who are high-risk borrowers find a suitable lending solution.
  • They are not regulated by the APRA, meaning they are more lenient when it comes to assessing debt.
  • They can offer cheaper interest rates than traditional banks.
  • They have fewer fees than traditional banks. with Non-banks are often specialist lenders, meaning they can help individuals who are high-risk borrowers find a suitable lending solution.
  • They are not regulated by the APRA, however we report to APRA. We favour customers that pay on time, every time.
  • They can offer cheaper interest rates than traditional banks.
  • They have fewer fees than traditional banks.

Mortgage House is a non-bank lender that specialises in every step of the lending process. We offer competitive interest rate home loans, allowing you to buy the home of your dreams while saving thousands of dollars over your loan term. Contact our lending specialists today to learn more about our home loan products.

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