What is non-bank lending?

Non-bank lending is finance provided by lenders outside the traditional banking system. These lenders use private capital to fund property-secured loans with faster approvals and more flexible assessment criteria than banks.

How fast can a non-bank loan be approved?

Indicative terms can be provided within 24–48 hours. Formal approval and settlement typically take 5–15 business days, depending on property type, valuation requirements, and legal complexity.

What interest rates do non-bank lenders charge?

Non-bank first mortgage rates typically start from approximately 8.75% per annum. Second mortgage rates are higher, generally from 1–2% per month. Rates vary depending on LVR, property type, loan term, and borrower profile.

Can I get a non-bank loan with bad credit?

Yes. Non-bank lenders assess the property and exit strategy rather than relying primarily on credit history. Borrowers with defaults, judgments, or ATO debt can be accommodated provided there is sufficient equity and a viable repayment plan.

What types of property can secure a non-bank loan?

Non-bank loans can be secured against residential, commercial, industrial, and rural property across Australia. Some lenders also consider vacant land and development sites, subject to acceptable LVR and location criteria.

Is non-bank lending regulated in Australia?

Business-purpose non-bank loans generally operate outside the NCCP Act, but reputable lenders and brokers maintain strict compliance standards. Consumer lending remains regulated regardless of the lender type.

Non-Bank Loans in Australia Explained: How They Work, What They Cost, and When They Make Sense

Sep 7, 2023
1 min read

Updated: Apr 15

If your bank has declined your application — or your timeline is too tight for a traditional approval process — you are not alone. Thousands of Australian borrowers, investors, and business owners face the same situation every year.

Non-Bank Loans in Australia Explained: How They Work, What They Cost, and When They Make Sense

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