When most people think about getting a home loan, they naturally think of the major banks. However, banks are no longer the only option. Non-bank lenders have become an important part of Australia's lending market, providing borrowers with greater choice and access to specialist lending solutions.
Whether you're purchasing your first home, refinancing an existing loan, investing in property or running your own business, a non-bank lender may provide lending options that better suit your circumstances.
Unlike traditional banks, many non-bank lenders specialise exclusively in lending. This allows them to focus on mortgage and finance solutions, often providing more flexible lending policies, personalised assessment and finance for borrowers with more complex needs.
In this guide, we'll explain how non-bank lenders work, how they differ from banks, and when choosing a non-bank home loan could be the right option for you.
A non-bank lender is a financial institution that specialises in providing loans but does not offer deposit products such as transaction accounts or savings accounts.
Like banks, non-bank lenders offer a wide range of lending solutions including owner-occupier home loans, investment loans, commercial property finance, construction loans and specialist lending products. The key difference is how they fund their lending.
Traditional banks primarily lend using customer deposits. Non-bank lenders fund their lending through wholesale funding from institutional and private investors.
Because they focus solely on lending, many non-bank lenders develop specialist expertise in mortgage lending and finance for borrowers whose circumstances may fall outside traditional bank lending policies.
Today, non-bank lenders are an established part of Australia's financial system, helping increase competition and providing borrowers with greater choice when seeking finance.
Both banks and non-bank lenders provide home loans in Australia and are subject to Australian consumer lending laws. The main differences lie in their funding model, product offering and lending approach.
While both banks and non-bank lenders offer competitive home loans, the right lender depends on your individual circumstances. If your income, employment or borrowing structure doesn't fit standard lending policies, a specialist non-bank lender may offer more suitable finance options.
A non-bank lender may be a good choice if you need more flexible lending criteria, specialist mortgage expertise or a loan tailored to complex financial circumstances.
Unlike traditional banks, non-bank lenders focus primarily on lending. This often allows them to assess applications more individually and offer finance solutions to a broader range of borrowers.
Many non-bank lenders focus exclusively on lending rather than offering a broad range of banking products. This allows them to develop specialist expertise across residential, commercial and asset finance.
Rather than relying solely on standard lending criteria, many non-bank lenders assess each application individually. This can benefit borrowers with complex financial circumstances or non-standard income sources.
Specialist non-bank lenders often provide finance solutions for:
Many non-bank lenders invest heavily in technology, allowing borrowers to complete much of the application process online while still receiving support from experienced lending specialists.
While non-bank lenders offer many benefits, there are also some differences worth considering.
Most non-bank lenders focus solely on lending. Unlike traditional banks, they generally don't offer transaction accounts, savings accounts or credit cards.
Many non-bank lenders operate online or through brokers and loan consultants rather than maintaining large branch networks.
Every lender has different lending criteria, products and credit policies. Comparing lenders based on your individual circumstances is often more important than simply comparing interest rates.
One of the biggest advantages of specialist non-bank lenders is their ability to support borrowers with a broad range of financial circumstances.
Business owners, sole traders, contractors and company directors often have more complex income structures than salaried employees. Specialist non-bank lenders may offer both full doc and low doc home loans using a range of income verification methods.
Investors purchasing through trusts or companies, growing larger portfolios or seeking flexible loan structures may benefit from specialist investment lending solutions.
Purchasing property through a Self-Managed Super Fund (SMSF) requires specialist lending expertise. Many non-bank lenders continue to actively support residential and commercial SMSF lending.
Development finance differs significantly from a standard home loan. Specialist lenders assess the project, security, feasibility, developer experience and proposed exit strategy to provide funding for eligible residential and commercial developments.
Australians living overseas and eligible foreign borrowers may require lenders experienced in assessing overseas income and foreign currency earnings.
Borrowers earning contract income, freelance income or working in the gig economy often benefit from lenders experienced in assessing alternative income structures.
Yes. Non-bank lenders providing consumer credit in Australia must hold an Australian Credit Licence and comply with the National Consumer Credit Protection Act, ASIC's lending requirements and Australian consumer protection laws.
Unlike banks, non-bank lenders do not accept customer deposits. This means they are funded differently and are not authorised deposit-taking institutions regulated by APRA.
For borrowers, however, both banks and licensed non-bank lenders operate within Australia's highly regulated financial system.
Not necessarily.
Interest rates vary between lenders and depend on factors such as the loan product, loan-to-value ratio, borrower profile and documentation provided. Rather than focusing solely on interest rates, borrowers should compare the overall loan solution, features and lender expertise.
Not true.
Many borrowers choose a non-bank lender because they value specialist lending expertise, flexible loan structures or a more personalised assessment process. Non-bank lenders support both straightforward and more complex lending scenarios.
Many specialist non-bank lenders provide a broad range of finance solutions, including owner-occupier and investment home loans, self-employed lending, SMSF loans, commercial finance, property development finance, bridging finance and asset finance.
Yard is an Australian non-bank lender specialising in residential, commercial and asset finance. Rather than offering everyday banking products, we focus on helping borrowers find lending solutions tailored to their individual circumstances.
Our lending solutions include:
Whether you're purchasing your first home, refinancing, investing, growing your business or funding a property development, our experienced Loan Consultants will work with you to find the right finance solution.
Every application is individually assessed, taking into account your financial position, income sources, property goals and borrowing requirements.
Non-bank lenders have become an established and important part of Australia's lending market. Whether you're buying your first home, refinancing, investing or financing a more complex property transaction, a specialist non-bank lender may provide lending solutions that better suit your circumstances.
If you're unsure whether a non-bank home loan is right for you, speaking with an experienced Yard Loan Consultant can help you understand your options and identify the lending solution that best meets your needs.
Not necessarily. Interest rates vary between lenders and depend on factors such as the loan product, loan-to-value ratio, property type, documentation provided and your individual financial circumstances. When comparing lenders, it's important to consider the overall loan structure, available features and the lender's expertise, not just the interest rate.
No. While many self-employed borrowers choose specialist non-bank lenders, they also support salaried (PAYG) employees, first home buyers, property investors, expats, SMSF borrowers and developers. Many borrowers simply prefer a lender that specialises in mortgage lending and provides a more personalised assessment process.
Many non-bank home loans include features such as offset accounts, redraw facilities and online loan management. Available features vary between lenders and loan products, so it's important to compare the overall loan rather than focusing on interest rate alone.
Yes. Many borrowers refinance from a traditional bank to a non-bank lender to access a loan that better suits their current circumstances. Common reasons include purchasing another property, consolidating debt, accessing equity, changing loan features or obtaining a lending solution that better suits self-employed or complex income structures.
Yes. A home loan with a non-bank lender does not prevent you from refinancing in the future. Many borrowers refinance when their circumstances change, such as after completing a property development, growing their business or increasing their income. As with any refinance, approval will depend on the new lender's lending criteria at the time.
It's also worth remembering that refinancing doesn't always mean changing lenders. Many non-bank lenders, including Yard, offer a range of home loan products and may be able to refinance you internally to a more competitive product as your circumstances evolve. This can provide access to a lower interest rate or different loan features while avoiding many of the costs and administration involved in switching lenders. Before refinancing, it's worth comparing all available options to determine which solution best meets your needs.
Sometimes. Every lender has different credit policies and lending criteria. A borrower who does not meet one lender's requirements may still qualify with another lender. Specialist non-bank lenders often assess applications more individually and may consider a broader range of income sources, ownership structures and lending scenarios.
Yes. Most mortgage brokers have access to both banks and non-bank lenders. A broker will typically recommend lenders based on your financial circumstances, borrowing requirements and the lender's credit policy rather than whether they are a bank or non-bank lender.
Every application is assessed on its own merits. Rather than relying solely on automated credit scoring, Yard considers your overall financial position, income sources, property security and loan purpose to determine the most suitable lending solution.
Yard is a specialist non-bank lender focused on residential, commercial and asset finance. We combine flexible lending solutions, experienced Loan Consultants and a streamlined digital application process to support borrowers with both straightforward and more complex lending requirements.
Unlike banks, which primarily lend using customer deposits, non-bank lenders generally obtain funding from institutional and private investors through wholesale funding arrangements. This allows them to focus exclusively on lending without offering deposit or transaction accounts.
There is no single lender that suits every borrower. While traditional banks are a good fit for many people, non-bank lenders often specialise in mortgage lending and may offer more flexible lending solutions for borrowers with self-employed income, complex ownership structures, specialist property types or unique borrowing requirements. The right lender depends on your financial circumstances, property goals and the type of loan you need.
A non-bank lender may be suitable if you're looking for a more flexible lending solution or your circumstances fall outside standard bank lending policies. This may include self-employed income, complex ownership structures, property investment, development finance or refinancing. Speaking with a Yard Loan Consultant can help you understand which lending options best suit your circumstances.
Non-bank lenders, like Yard, are required to hold an Australian Credit Licence and are regulated by the Australian Securities and Investments Commission (ASIC). ASIC oversees their lending practices, protects consumer rights, and promotes fair competition.
Non-bank lenders are also regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC) in relation to Anti-Money Laundering and Counter Terrorism Financing (AML/CTF) requirements. Non-bank lenders that are registered financial corporations are also required to report periodic data to APRA. This ensures they comply with the National Consumer Credit Protection Act (NCCPA). This means you can have confidence that non-bank lenders are operating within a regulated framework.
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Service requests: help@yard.com.au
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