What is a non-bank lender?
Find more support and flexibility in your home loan options
When people decide to borrow money for a home, the majority will go straight to a bank. It makes sense – most people already have a banking relationship, and generally, banks can help a large percentage of Australians.
However, failing to explore all your home loan options could mean you miss out on a better deal, or you may be dealing with circumstances that mean your bank can’t assist you.
You might want to buy your own home, refinance an existing loan, or purchase an investment property. But you might also be newly self-employed, have some other debt you would like to pay off, or have had some missed loan repayments. These things will often result in the bank saying, ‘no’, but that doesn’t have to be the end of it. The good news is, you might have more choices than you first think.
At Bluestone, we have over 20 years of home lending experience specialising in home loans and residential investment loans.
Here’s what you need to know about non-bank lenders like us – and why a Bluestone home loan may be just what you need.
Non-bank: what does it mean?
As the name suggests, non-banks are not like your traditional banks. Unlike traditional banks, non-banks do not offer everyday deposit and transaction accounts or term deposit accounts. What non-banks do provide are alternative home loan and lending options.
Like banks, the Australian Securities & Investments Commission (ASIC) regulates non-banks, which means non-banks must comply with the same responsible lending laws that banks do.
Home loan options to suit all types of borrowers
Not everyone fits the traditional borrower mould, but that doesn’t mean you should have to put your financial goals on hold.
A Bluestone loan might be for you if:
- You’re newly self-employed. Most banks require two years’ proof of income before they’ll even consider your application. At Bluestone, we accept various ways to demonstrate income including BAS and business bank statements – giving self-employed customers more options.
- You’ve missed a few loan repayments. Often, missed loan repayments are the result of an unexpected, one-off event like a divorce, illness or death – despite otherwise being good at managing your money. We assess your individual circumstances to understand the underlying reasons for a less than perfect credit file.
- You’ve defaulted on a credit card or other loan. Depending on the age and size of the default, we might be able to ignore it. We’ll also consider the impact of COVID-19 on your ability to meet your current financial obligations.
- You have a large amount of unsecured debt. Having multiple credit cards and personal loans often get in the way of being able to borrow money for home purchase or refinance. There are ways we can consolidate your debts, so you can get back in the black as soon as possible.
Debunking non-bank myths
There are a lot of myths about non-banks – and most of them are untrue.
Here are some of the most common misconceptions:
- Non-bank loans have high interest rates. Not necessarily. At Bluestone, we individually assess every home loan application to ensure we provide loan and interest rate options that suit your circumstances. Our best available rates are competitive with mainstream banks, and in many cases our current rates are lower.
- Non-bank loans are only for people who can’t manage money. Certainly not. Bluestone’s customers come from all walks of life. Some get knocked back by the major banks simply because they don’t tick the usual boxes – but that doesn’t mean they’re a credit risk.
- Non-bank loans are only a short-term solution. No – in fact, many of our customers have been with Bluestone for years.
- Non-banks are less financially secure. Not true. Non-banks must comply with many of the same rules and regulations as banks. At Bluestone, we follow strict and responsible lending practices.
The Bluestone difference
At Bluestone, we take a much more personalised approach to credit assessment. Unlike mainstream banks, we don’t use automated credit scorecards. Instead, we have a team of specialists who personally assess your circumstances.
Our lending specialists focus on each individual customer, from application through to settlement. We pride ourselves on competitive rates and our ability to keep you informed and supported through every step of the loan process.