For most home buyers securing a loan, from a traditional lender such as a bank is a logical first step. However for those that have a low deposit, are self-employed or maybe have a less than ideal credit history, this can become more of a challenge. Looking outside of banks, at a Non-Bank lender such as a credit union or a building society to provide mortgage funds may be an option for those who are unable to borrow from the banking sector.
When would you use a a Non-Bank Lender?
For home buyers with a low deposit or bad credit history, a Non-Bank lender can be a stop gap for borrowers. In some cases a slightly higher interest rate may be charged, but non-bank lenders have more flexibility and are able to offer a better fit for individual situations. They are also not affected by LVR restrictions so could offer a solution for first home buyers with lower deposits. More and more home buyers are looking into different options for lending, particularly if the bank could say no. So it's worthwhile talking to a mortgage advisor or you can also click on the button below to read more on non-bank lending.