Are non-bank lenders safe to borrow from?

Reputable non-bank lenders operating under an Australian Credit Licence are regulated by ASIC and must comply with legal obligations. The key is working through a specialist broker who has vetted the lender and has an established relationship. Borrowers should always obtain independent legal advice before signing any loan agreement, regardless of the lender type.

Do non-bank lenders charge higher rates than banks?

Yes. Non-bank property-secured lending typically ranges from 9–15% p.a., compared with 6–9% at a bank. The higher rate reflects the faster approval, more flexible criteria, and shorter-term nature of the lending. For many borrowers, the additional cost is offset by the commercial value of speed and access.

Can I approach a non-bank lender directly?

Some non-bank lenders accept direct applications, but most operate exclusively through broker channels. Even where direct application is possible, working through a broker gives you access to multiple lenders, competitive pricing through negotiation, and professional application packaging — which typically results in faster approval and better terms.

What's the difference between a non-bank lender and a loan shark?

A legitimate non-bank lender holds an Australian Credit Licence, uses independent solicitors for documentation, provides transparent fee disclosures, and operates within the law. Predatory lenders operate without proper licensing, charge undisclosed fees, and use unfair contract terms. Working with a licenced broker who only deals with licenced lenders eliminates the risk of encountering predatory operators.

A Guide to Non-Bank Lenders in Australia

Aug 13, 2024
1 min read

Updated: Apr 15

The term "non-bank lender" covers a broad spectrum of the Australian lending market — from large, publicly listed mortgage companies to small private lending funds managed by a single credit committee. Understanding who these lenders are, how they operate, and what distinguishes a good one from a risky one is essential for any borrower considering finance outside the traditional banking system.

A Guide to Non-Bank Lenders in Australia

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