Should You Use a Lender That Is Not a Bank

Should You Use a Lender That Is Not a Bank

With banks becoming increasingly more restrictive on home loans every year it’s becoming more important to consider options outside the major lenders including non-bank lenders. Non-bank lenders still have to follow the same regulations as other lenders and the market is so competitive that all lenders offer the same range of services. There are also several unique benefits that you get with non-bank lenders that you will be unlikely to experience with banks that make them worth considering for your next home loan.

Competitive Interest Rates and Fees

In many cases, the large size and corporate structure of the big banks work against them rather than for them. Many of the most competitive interest rates on the market are offered by non-bank lenders that don’t have the massive costs of managing a large corporation and can offer lower interest rates as a result. The lower ongoing costs of non-bank lenders also convert into lower setup and ongoing fees for borrowers. This is important as it can sometimes be the extra ongoing fees that add up to make a home loan cost more in the long run.

Non-conforming Home Loans

Non-bank lenders are a lot more flexible with their home loans and are more likely to offer and approve non-conforming home loans. Non-conforming home loans do not adhere to the standard loan criteria and suit borrowers that require specialised home loans that fit their circumstances. Many non-conforming home loans that would have been declined by the major banks are able to be offered by non-bank lenders.

Ultimately whether you should use one lender over another comes down to you and your personal circumstances. A mortgage broker can help find the perfect lender for you.

If you would like to learn more about non-bank lenders and what they can do for you, please get in touch with us today.

Credit: Active Pipe