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Non-Bank Lenders Mortgage Comparison

There are so many non-bank lenders in Australia offering flexible, competitive mortgages. Compare rates from 2.21%.

Last updated:

While many Australians stick with the larger banks for the mortgages there are actually many non-bank institutions which will lend you money. These lenders can be local to your region or nationwide lenders who are 100% online. With fewer (or no) branches and the need to compete for new customers, many non-bank lenders offer some of Australia's lowest home loan rates.

Compare non-bank home loans

The loans in this table above include non-bank lenders and many small credit unions but exclude the Big Four banks and other major banks.

Rates last updated March 30th, 2020
Loan purpose
Offset account
Loan type
Repayment type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
Pepper Money Essential Prime Alt Doc Home Loan - LVR up to 55%
$10 monthly ($120 p.a.)
A competitive rate home loan with an offset facility for self-employed borrowers.
Aussie Select Basic Fixed Rate Home Loan - 3 Year Fixed LVR up to 80% (Owner Occupier, P&I)
$0 p.a.
Lock in a 3 year fixed rate with no upfront or ongoing fees.
Pepper Money Essential Prime Full Doc Home Loan - LVR >75% up to 80%
$10 monthly ($120 p.a.)
This is a competitive, flexible variable rate suitable for borrowers with a good credit history. Borrow up to 80%.
Aussie Select Basic Fixed Rate Home Loan - 2 Year Fixed LVR up to 80% (Owner Occupier, P&I)
$0 p.a.
A two year fixed rate home loan with no annual or application fees.
Aussie Select Basic Fixed Rate Home Loan - 2 Year Fixed LVR over 80% (Owner Occupier, P&I)
$0 p.a.

Compare up to 4 providers

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Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.

Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2019 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

By submitting this form, you agree to the Aussie privacy policy.

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Finding a good loan from a non-bank lender

You should compare the home loans offered by non-bank lenders in the same way that you do with banks, looking at the interest rates, fees and features and finding the home loan that suits your needs. Take advantage of home loan calculators which can show you based on that criteria, and your desired home loan amount and terms, which home loan option gives you the most value.

What is a non-bank lender?

A non-bank lender is an institution other than a bank that offers loan products to consumers. These lending institutions do not hold a banking licence, but they are also tightly regulated, as defined by the Consumer Credit Code, which governs all credit transactions in Australia, and by the Australian Securities and Investments Commission (ASIC).

Banks and credit unions are regulated by the Banking Act and are listed by APRA as authorised deposit-taking institutions (you can see the full list of these institutions on APRA's website).

Non-bank lenders are privately owned and not mutual, typically relying on wholesale sources to get their funding. While non-bank lenders may not offer all the financial products that a bank does, many have a wide selection of products.

Non-bank lenders come in several forms, including:

These definitions can get quite technical and rarely matter to the ordinary borrower. Many digital lenders look like small non-banks but are actually owned by one of the Big Four banks. Some of Australia's newer neobanks, meanwhile, are independently owned companies that are in the process of gaining full banking licenses.

Can I get a lower rate with a smaller lender?

Usually, yes. A non-bank lender has more flexibility in the rates and fees on their home loans. This allows them to compete with the banks by undercutting the cost of their products. In doing so, the banks have to respond to the competitive market and lower theirs as well.

If you really want to get a sense of which rates are the lowest on the market now, check out our monthly rate tracker page. Non-bank lenders typically dominate the list of lowest rates each month.

List of non-bank lenders in Australia

Here is a list of many prominent small and non-bank lenders operating in Australia.

What happens if a non-bank lender goes bust?

You really don't need to worry too much about this. Non-bank lenders are governed by most of the same regulations as the banks. And while they certainly are more exposed to risks during a financial crisis you are still protected.

A non-bank lender can’t force you to pay your loan balance in full when they are in trouble. Similarly, if your lender went bankrupt you wouldn't magically escape your mortgage debt. You would need to keep repaying your loan. If your old lender gets bought up by a new lender then they will take charge of your mortgage but your existing loan contract will remain in effect.

Learn more: what happens if an online lender goes bust?

Are there any disadvantages about using a non-bank lender?

The potential downsides of a non-bank lender are relatively small and might not apply to every lender.

  • Fewer services. Many non-bank lenders offer only a handful of financial products, making it harder to do all your banking in one place.
  • No physical branches. If you prefer to do your banking in person then a more traditional bank would probably be better for you.
  • Fewer options. The larger banks offer a broad suite of mortgages that suit most borrowers. Non-bank lenders may have fewer options, and this can be harder if you're a self-employed borrower or have bad credit history.

Read more on this topic

Home Loan Offers

Important Information*
Logo for UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000 (*now 2.84%, drops to 2.59% on 3 April)
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000 (*now 2.84%, drops to 2.59% on 3 April)

Take advantage of a low-fee mortgage with a special interest rate of just 2.59% p.a. and a 2.59% p.a. comparison rate.

Logo for HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.

Logo for Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)

Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.

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15 Responses

  1. Default Gravatar
    PaulOctober 20, 2018


    We have a home loan in joint names. I have been made redundant the last 18 months and we were going to consolidate our debt by combining our credit card debt but have been told because I am not working and my wife not earning enough they would not refinance our loan. Is it possible to refinance with another bank, we have around $300,00 equity in our current loan but was told that did not matter.

    • Avatarfinder Customer Care
      JeniOctober 26, 2018Staff

      Hi Paul,

      Thank you for getting in touch with finder.

      Sorry to hear that.

      You could try to refinance with your current lender to consolidate debt (same lender but maybe you can get a lower rate, or same rate but roll card debt into the mortgage, it’s still cheaper that way). It is also best to speak to a mortgage broker, who can help guide refinancers in tough situations.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!


  2. Default Gravatar
    RoseMarch 19, 2018


    We have been declined for a refinance loan by a big four bank, it doesn’t make sense as we are consolidating debt incurred from renovations. And they said we spend too much. Go fingers. Anyway we had a great valuation from the bank and feel we may not get another bank val of the same value if we have to go to another lender, we are looking at non bank lenders now, and want to know if there is any way we ca use the bank val that we already have at another institution?

    • Avatarfinder Customer Care
      JeniMarch 19, 2018Staff

      Hi Rose,

      Thank you for getting in touch with finder. When it comes to refinancing home loans, comparing your loan options is the obvious starting point. This requires that you compare interest rates as well as a range of loan features. Comparison is by no means a difficult procedure, but it can be time-consuming. And if you have a complex set of circumstances, you may need some guidance to find the lender best suited to your situation. You may still show or bring your bank valuation, lenders might look into it for reference as well.

      A good mortgage broker can help you determine the best possible options for your needs. You can benefit from the expert opinion your broker imparts. So I suggest that you speak with a mortgage broker to assist you further.

      I hope this helps.

      Have a great day!


  3. Default Gravatar
    JennyJune 30, 2017

    Six months ago before we sold our home, the bank informed me that I would be eligible for a loan if needed to purchase our next home. We have total equity in our existing home.

    When we sold and asked for a small loan they declined it hinting that the more we enquire about a loan, it would mean we would get a bad credit rating. We are an elderly and require just enough to make up for the sharp upswing in the market and is confused by the threat of a ” bad credit rating”

    As far as I am aware we have always paid our bills, maybe sometimes not on time because of the sudden switch from paper bills to email ones.

    Any explanation would be a relief thank you.

    • Default Gravatar
      JonathanJuly 1, 2017

      Hi Jenny!

      Home loan application is considered a “hard inquiry” which may make your credit score lower especially if done within a short-period of time.

      If you wish to get other options on applying for a home loan that can be offered to pensioners, you may consider the lenders offered on this page.

      Hope this helps.


    • Default Gravatar
      JennyJuly 1, 2017

      Thanks Jonathon I’ll do that, sorry about enquiring again but I couldn’t find this page!

  4. Default Gravatar
    BrettApril 3, 2017

    My question is, when mortgaging with a non-bank lender, is the money I have in the offset account covered by the government guarantee?
    As savings accounts (with balances up to $250k) are with one of the “Big4”.

    • Avatarfinder Customer Care
      MayApril 4, 2017Staff

      Hi Brett,

      Thank you for your inquiry.

      Which bank do you have your savings account with? Usually, savings accounts from banks (other than the “Big 4”) and other financial institutions are covered by the government guarantee up to $250,000. You can check/confirm that through ASIC if you like.


  5. Default Gravatar
    LinMay 11, 2016

    Hi Just wonder do you still lend to foreign investors?
    If you do, what kind of deposit I need to have please. thanks

    • Avatarfinder Customer Care
      MarcMay 11, 2016Staff

      Hi there Lin,
      thanks for the question.

      Each lender will have their own policy regarding foreign investors, with some not lending to foreign investors and others lending but sometimes with added requirements or restrictions. It’s best to compare loans and then contact any lenders you’re interested in borrowing from to see what their policy is.

      I hope this helps,

  6. Default Gravatar
    FionaSeptember 11, 2014


    • Avatarfinder Customer Care
      ShirleySeptember 12, 2014Staff

      Hi Fiona,

      Thanks for your question.

      If you’d like to refinance with one of the lenders on this page, please click ‘go to site’ to submit an enquiry.

      If you’re not sure which lender to approach, I’d recommend that you get in touch with a mortgage broker. A mortgage broker is a home loan expert who can help you find the right loan for your situation.


  7. Default Gravatar
    BebeJanuary 27, 2014

    Will any of the lenders, consider a person over 50 for a homeloan. I have a deposit but will need to borrow approx $250,000 on a salary of $60,000.

    I am a university graduate with no debts who wants to work in NSW but only if I can buy a home.

    • Avatarfinder Customer Care
      MarcJanuary 28, 2014Staff

      Hello Bebe,
      thanks for the question.

      All of the lenders we spoke to regarding this same question last week said there’s no maximum age when borrowing for a home loan. If the lender feels that you satisfy their lending criteria they’ll approve the loan. You may wish to contact some lenders before making any applications and enquire as to their policies before making any formal applications.

      I hope this helps,

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