Non-bank lenders Australia-wide – mortgage comparison

Non-bank lenders offer competitive home loan rates, often with more flexible policies than banks. Compare rates from 2.14%.

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Non-bank mortgage lenders are becoming more popular with borrowers who can see the value in their flexible and innovative home loan products. Non-bank lenders could be local to your region, or nationwide lenders who are 100% online. With fewer (or no) branches, many non-bank lenders have lower overheads costs, so they 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.

Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Fees Monthly Payment Smart Booster Discount Variable Home Loan P&IHome≥ 20% Deposit Smart Booster Discount Variable Home Loan
  • App: $0
  • Ongoing: $0 p.a.
Get a low discounted variable rate loan. Requires a 20% deposit. Get your loan processed fast and settle within 30 days.

Well Home Loans Balanced Fixed Home Loan P&IHome 2Y Fixed≥ 10% Deposit

Well Home Loans Balanced Fixed Home Loan
  • App: $250
  • Ongoing: $0 p.a.
A low fixed mortgage with an optional 100% offset account. Not available for construction purposes.

Athena Variable Home Loan P&IHome≥ 40% Deposit

Athena Variable Home  Loan
  • App: $0
  • Ongoing: $0 p.a.
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees. Smart Booster Discount Variable Home Loan P&IHome≥ 20% Deposit Smart Booster Discount Variable Home Loan
  • App: $0
  • Ongoing: $0 p.a.
Home buyers can get a very low discounted variable rate for the first year. Requires a 20% deposit. Add an offset sub-account for an additional 0.10% on your interest rate. Get your loan processed fast and settle within 30 days.

Well Home Loans Balanced Fixed Home Loan P&IHome 1Y Fixed≥ 10% Deposit

Well Home Loans Balanced Fixed Home Loan
  • App: $250
  • Ongoing: $0 p.a.
Owner occupiers can get a sharp fixed rate for the first year, plus an offset account. Available with a 10% deposit.

Compare up to 4 providers

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 cheapest home loans 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.

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15 Responses

    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!


    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!


    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!

      A 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 our page that lists home loans for pensioners.

      Try to speak to a mortgage broker as well. A mortgage broker is a professional who compares and helps you apply for home loans on your behalf. A good mortgage broker will give you personalized service all the way through to settlement.

      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!

    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.


    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,

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