Non-Bank Lenders Mortgage Comparison

There are so many non-bank lenders in Australia offering flexible, competitive mortgages. Compare rates from 3.08%.

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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 August 25th, 2019
$
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
3.09%
3.05%
$0
$0 p.a.
80%
Low variable rate mortgage for owner occupiers looking to switch. Refinancers only.
3.15%
3.19%
$500
$0 p.a.
95%
This mortgage combines a very sharp interest rate with a 100% offset account and it's available with a 5% deposit.
3.15%
3.99%
$600
$0 p.a.
95%
Competitive rates for fixed for 3 years with no ongoing fees.
3.59%
3.79%
$599
$10 monthly ($120 p.a.)
55%
A competitive rate offered to self-employed borrowers.
3.49%
3.45%
$0
$0 p.a.
80%
A competitive variable mortgage for investors looking to refinance. Principal and interest repayments. Refinancers only.
3.37%
3.42%
$695
$0 p.a.
95%
A simplified mortgage with a low interest rate and a redraw facility.
3.69%
3.88%
$0
$10 monthly ($120 p.a.)
80%
This is a competitive, flexible variable rate suitable for borrowers with a good credit history. Borrow up to 80%.
3.08%
3.47%
$0
$0 p.a.
80%
A two year fixed rate home loan with no annual or application fees.

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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.
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Home Loan Offers

Important Information*
Logo for UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.09% p.a. and a 3.09% p.a. comparison rate.

Logo for Athena Variable Home Loan - Refinance (Owner Occupier, P&I)
Athena Variable Home Loan - Refinance (Owner Occupier, P&I)

Low variable rate mortgage for owner occupiers looking to switch. Refinancers only.

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15 Responses

  1. Default Gravatar
    PaulOctober 20, 2018

    Hi,

    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!

      Cheers,
      Jeni

  2. Default Gravatar
    RoseMarch 19, 2018

    Hi

    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!

      Cheers,
      Jeni

  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.

      Cheers,
      Jonathan

    • 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.

      Cheers,
      May

  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,
      Marc.

  6. Default Gravatar
    FionaSeptember 11, 2014

    I HAVE TAKEN ON AS MY HOME A OLD CARAVAN PARK FROM MY DECEASED PARTNER. THE ESTATE SOLD OFF MUCH OF THE BELONGINGS TO SATISFY DEBT OWED. I TOOK ON THE REMAINING. THE PARK ITSELF IS OPERATING AND HAS GOOD EQUITY, HOEVER THE BOOKS DO NOT LOOK AS GOOD. looking TO REFINACE OR CONSOLIDATE MY HOME WHICH IS ALSO MY HOME BUSINESS THEREFORE BRINGS IN AN INCOME/RENTAL. THERE HAS BEEN PREVIOUS OFFERS OF $850,000.00 TURNED DOWN AND THE DEBT IS ARROUND $350,000.00.
    It IS THE ONLY FREEHOLD LAND ON THE SNOWY HYDRO KHANCOBAN PONDAGE AND BEING HOMEBASED I AM OPEN SEVEN DAYS A WEEK WITH 24HR AVAILABILITY.

    • 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.

      Cheers,
      Shirley

  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,
      Marc.

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