Exploring Non-Bank Mortgage Lenders

Not everyone qualifies for a mortgage from the traditional banks - but this doesn't have to mean the end of your homeownership dreams. Work with a mortgage broker like WealthHealth, and we can access a range of non-bank lenders who offer flexible mortgage alternatives - alternatives that can be particularly beneficial for those with unique financial situations or needs.

You might even consider a non-bank mortgage as a strategic step towards eventually refinancing with a main bank lender…

Flexible Lending Criteria

• If you’re self-employed, a freelancer, or have an irregular or non-traditional income source, non-bank lenders are typically more accommodating. For instance, if you’re a new business owner who hasn’t completed the usual requirement of providing two years of financial account history, you may still be able to get a mortgage (our mortgage brokers can help you here!)

• Borrowers with credit history issues and impacted credit scores might find it easier to secure a loan through a non-bank lender. If there’s a good explanation for your credit issues, some non-bank lenders are still open to considering your circumstances.

• Non-bank lenders are often more willing to consider unique financial situations and tailor loans to fit individual needs.

Competitive Interest Rates

Non-bank lenders can offer competitive interest rates that are usually only slightly higher than those of traditional banks. Like traditional banks, non-bank lenders offer a variety of loan products including both fixed and variable interest rates.

Great Service

Non-bank lenders often provide a more personalised service experience. Non-bank lenders also typically have efficient, streamlined processes that can result in faster loan approvals and settlements.

Means to an End: Refinancing to a Main Bank Lender

Non-bank lenders can serve as a helpful stepping stone if you don’t initially qualify for a mortgage from a traditional bank.

If you have irregular income, credit issues, or unique financial circumstances, a mortgage broker can oftentimes get you an approval through a non-bank lender, when traditional banks would say No. This allows you to get into that first home and begin building equity.

During the term of your mortgage with the non-bank lender, you can work on improving your credit score, stabilising your income, and meeting the traditional lending criteria of major banks. This approach gets you onto the property ladder, while giving you a period of time to demonstrate your financial reliability and improve your overall financial profile.

Once you have improved your financial situation, you can then consider refinancing your mortgage (this time with a main bank lender) for lower interest rates and better terms.

Non-bank lenders can be an awesome choice for borrowers who need an initial mortgage approval and a pathway to improving their financial situation. By using non-bank lenders as a means to an end, you can work towards refinancing your mortgage with a main bank lender once you better meet traditional lending criteria, ultimately securing better rates and terms.

Ready to take the first step? Get in touch with our mortgage brokers today.

Our blog is not intended to be taken as personal advice and is for informational purposes only.
Before acting on this information, contact our mortgage broker to ensure it is suitable for your circumstances.