Non-Bank Lending Just Jumped 65%. Here’s What That Means For You
More Australians are looking past the big banks for their home loan, and the latest numbers show just how fast that shift is happening. New ABS Lending Indicators data, reported by MPA, shows non-bank lenders issued $10.49 billion in new home loans over the June quarter, a rise of 65.2% on the year before. If you’ve been told “no” by a bank recently, or you’re just curious about your options, this one’s worth a read.
What’s Actually Happening
Non-bank lenders (the ones that aren’t APRA-regulated banks or credit unions) grew their lending by 65.2% year-on-year, while the major banks and other ADIs managed just 2.6% growth over the same period. Non-banks now hold 10.7% of the new home lending market, more than double what they held a few years ago.
Here’s the more telling bit: total new housing lending actually fell 5.2% over the quarter. But non-bank lending still grew 3.2% in that same window. While the overall market cooled, non-banks kept moving forward.
Why Borrowers Are Looking Beyond The Banks
A big part of this comes down to serviceability rules. Banks have to apply a strict buffer when working out what you can borrow. Non-banks aren’t bound by the same rules, so many apply a smaller buffer, which can mean more borrowing power for the same income.
It also comes down to flexibility. Self-employed borrowers, people with a blemish on their credit file, or anyone with income that doesn’t fit neatly into a bank’s checklist often find non-bank lenders easier to work with. And here’s something worth clearing up: going non-bank doesn’t automatically mean paying more. Plenty of non-bank options are genuinely competitive on rate, particularly for straightforward borrowers with solid equity.
What This Means For You
If your borrowing power has felt tighter than expected, or a bank has knocked you back, it might just mean you’ve been looking in the wrong part of the market. The right fit isn’t always the biggest name; it’s the lender whose policy actually matches your situation.
This is exactly the kind of comparison a broker can do for you, weighing up rate, fees, and lending criteria side by side, across banks and non-banks, so you’re choosing with the full picture rather than guessing.
Want to see what’s really available to you?
At OM Financials, we compare options across banks and non-banks so you get a loan that actually fits your circumstances, not just what one lender’s checklist allows. Whether you’re self-employed, buying your first home, or just want to know your borrowing power, speak with our brokers today. Book your free consultation or call us anytime on 0478 876 967.
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