Promoted by Loans.com.au
Whether you are looking to refinance your current investment loan or expand your investment property portfolio, you would be wise to consider a non-bank lender.
While the major Australian banks still dominate the market, non-bank lenders have increased their market share in recent years. Non-bank lenders provide a legitimate alternative to big banks and have created a competitive environment to the advantage of borrowers who have realized their benefits.
If you are an investor, here is why you should consider choosing a non-bank lender for your investment loan.
How are non-bank lenders different from larger lenders?
Borrowers have three types of lenders to choose from when it comes to home loans: non-bank lenders, mutuals, and banks. Mutuals and banks offer deposit accounts and are classified as Authorized Depository Institutions (ADIs). Mutuals and banks are both regulated by the Australian Prudential Regulation Authority (APRA).
On the other hand, non-bank lenders do not themselves issue deposit accounts, such as term deposits or savings accounts, and are not regulated by the government. 39; APRA because they are not classified as ADI. However, they must still comply with national consumer credit protection laws and are regulated by the Australian Securities and Investment Commission (ASIC).
One of the biggest misconceptions about non-bank lenders is that they are not as secure as traditional banks because they are not regulated by APRA. Some believe that non-bank lenders are more vulnerable during times of economic instability, or that interest rate hikes would be more likely to be passed on by smaller lenders.
However, neither is necessarily true. Banks and non-banks must comply with laws and industry codes. Some non-bank lenders like Loans.com.au are also focusing on safer borrowers and offering rates that rival those of the big banks.
Another perceived disadvantage of a nonbank or online lender is that there are no physical branches.
"But what our team at Loans.com.au like to say, we can have clients on the phone and apply for their home loan or investment before the time it would take to get in the car and drive to the local branch, "said Marie Mortimer, managing director of Loans.com.au.
"We are also open and available to assist you outside of the typical bricks and mortar from 9:00 p.m. to 5:00 p.m., our loan specialists taking calls from 7:00 a.m. to 7:00 p.m. and our chat team. live available to help you from 7:00 a.m. to 7:00 p.m. in the morning to 12:00 p.m. This is great service! "
What are the advantages of choosing a non-bank lender?
Unlike large banks, non-bank lenders are not burdened with the cost of having multiple branch networks and a large corporate structure.
“As investors you want the process to be as smooth as possible. By choosing a non-bank lender, the service is exceptional and you will likely get a faster turnaround time than with a bank, ”Ms. Mortimer said.
"Also, as Loans.com.au is an online non-bank lender, we don't have any physical branches so there is less overhead which means we can pass the savings on to our clients."
Another advantage of non-bank lenders is their quick turnaround times. Since speed of market access is essential for investors in today's climate, conventional banks are becoming a less attractive option for borrowers who need to embark on a purchase.
“Obviously, in today's market, some buyers are having difficulty buying property due to the fierce competition from home buyers in Australia,” Ms. Mortimer said.
"This means it is important to choose a lender that you can trust to get you to settle as quickly as possible. Big banks these days can take weeks or even months to settle, so you might find it much quicker to choose a non-bank lender, such as Loans.com.au or Firstmac. "
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Marie Mortime r is the Managing Director of Loans.com.au, one of Australia's largest online lenders. Since Marie started the business 10 years ago, Marie has made Loans.com.au into a business with $ 6 billion in home and auto loans. Marie is dedicated to improving financial literacy for all Australians and is passionate about the FinTech industry in Australia. When she's not at work, she enjoys spending time with her husband and two young children.
loans.com.au is an online lender for home and auto loans. For 10 years, Australians trusted the local Loans.com.au team to support them with low mortgage and car loan rates, approved quickly through the online Loans.com app. .au.
