Compare non-bank lender interest rates from 5.59%

See the lowest interest rates from non-bank lenders that are available in the market.

Brooke Cooper
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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
Featured 4.5 STAR CUSTOMER RATINGS
  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset 
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
  • Find out your loan eligibility in 2 minutes or less
  • Complete your application in less than 20 minutes
  • Low fees and fast approval times
6.29% p.a.
6.20% p.a.
$2,473
Principal & Interest
Variable
$0
$0
80%
6.34% p.a.
6.34% p.a.
$2,486
Principal & Interest
Variable
$0
$0
50%
6.38% p.a.
6.41% p.a.
$2,497
Principal & Interest
Variable
$0
$500
80%
6.39% p.a.
6.37% p.a.
$2,499
Principal & Interest
Variable
$0
$0
60%
Automatic rate-match*
  • $0 Athena fees. Seriously, zero Athena fees
6.43% p.a.
6.68% p.a.
$2,143
Interest-only
Variable
$0
$530
90%
  • 10% deposit minimum
  • Up to 30 yrs loan term
  • Interest Only during construction
6.69% p.a.
6.95% p.a.
$2,578
Principal & Interest
Variable
$0
$995
70%
7.64% p.a.
7.82% p.a.
$2,835
Principal & Interest
Variable
$10
$599
85%
7.89% p.a.
8.24% p.a.
$2,904
Principal & Interest
Variable
$15
$2,320
85%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .



Looking for a competitive home loan? You might find your perfect fit with a non-bank lender!

Non-bank home loan providers have added a new level of competition to the Australian mortgage landscape, offering borrowers more options to help realise their homeownership dreams.

If you're preparing for your first home purchase, you're considering refinancing, or you're planning to get an investment property, here's what you should know about Australian non-bank lenders.

What is a non-bank lender?

As the name suggests, a non-bank lender can provide home loans, car loans, and other financial products, but can't take consumer deposits.

Non-bank lenders, therefore, won't be able to provide savings accounts, term deposits, or even traditional offset accounts (although some non-bank lenders offer products that operate similarly to offset accounts).

So, if traditional banks finance much of their loan book through consumer deposits, how do non-bank lenders fund their mortgages? To provide loans, non-bank lenders typically raise funds by issuing bonds to investors and institutions.

One common misconception borrowers have about non-banks is that they're not as safe as a bank, but that's not the case. Banks don't offer any extra protection to borrowers than non-banks.

Further, while non-bank lenders don't have authorised deposit-taking institution licences (ADIs), they must have an Australian Credit Licence (ACL) to operate. That means they have to comply with National Consumer Credit Protection Laws, Australian Consumer Law, and regulations set by the Australian Securities and Investments Commission (ASIC).

Australian non-bank lenders

Non-bank lenders operating in Australia include:

What do non-bank lenders offer homeowners?

Non-bank lenders have increased in popularity in recent years, perhaps spurred by homebuyers seeking more competitive home loans.

Certain non-bank lenders offer some of the lowest-rate home loans on the market, though that's not necessarily a feature of all non-banks.

Non-banks have also been known to offer fast approval times, exceptional customer service, and innovative loan products. Again, however, such factors will vary from lender to lender.

As non-bank lenders don't have to abide all of the regulations that banks do, they can sometimes be more flexible when considering a potential borrower.

They can also offer a specific mortgage products for those who find themselves in specific situations, such as low-doc home loans for self-employed borrowers or construction home loans for owner-builders.

Other non-banks might even provide line of credit home loans, guarantor loans, and bridging loans.

Advantages of getting a home loan from a non-bank lender

Transacting with a non-bank lender has its slew of benefits. Here are some advantages of getting a home loan from a non-bank lender:

  • These lenders often offer more competitive interest rates than traditional banks
  • Many non-bank lenders have lower ongoing fees
  • Non-bank lenders usually have faster approval and turnaround times compared to traditional banks
  • They are widely considered to be a safe and genuine competitor to traditional banks
  • Online non-bank lenders can offer futuristic features and fewer overheads, passing the savings onto borrowers
  • Some non-bank lenders are more willing to lend to higher risk borrowers such as those who are self-employed or who have a fluctuating credit history

Disadvantages of using a non-bank lender

While non-bank lenders are a great alternative to traditional banks, there are some setbacks.

  • There are numerous smaller non-bank lenders out there, and some might not offer a full suite of products
  • Many non-banks have a limited physical presence, and some don't even have branches
  • Since non-banks can't take consumer deposits, they can't offer traditional offset accounts

Frequently asked questions about non-bank lenders

Non-bank lenders are gaining traction among borrowers who might want an alternative to a traditional bank. But before you start exploring, here are the answers to some common questions you might have about non-bank lenders.

Not at all. Non-bank lenders offer home loans to people from walks of life who want alternative mortgage options.

Non-banks usually have a different set of criteria for potential applicants, which allow those who might have been turned down by a traditional bank to qualify for a home loan.

However, that’s not the case with all non-banks. Indeed, some are particularly strict about who they will and won’t lend to.

While not always the case, non-banks often offer more competitive rates than traditional banks.

This might be because they’re able to reduce their costs, thereby they can pass on their savings to borrowers in the form of lower interest rates.

It might also be that they’re typically more streamlined operations and can therefore provide lower-cost home loans. An entity that offers only loans may be more nimble than another offering a whole suite of finance products.

Yes! Non-bank lenders have to comply with many of the rules and regulations that traditional banks do.

Some non-bank lenders are even backed by Australian financial institutions. In the event that a non-bank lender closes, another lender will generally take over its client base. This means, if a non-bank lender goes bust, you will still likely have to service your mortgage debt.

Non-bank lenders often depend on wholesale funds, either from Australian banks or international institutions. They can also raise funds by issuing bonds to institutions and investors.

Non Bank Lenders

Aussie Home Loans Community First Home Loans Easystreet Home Loans Freedom Lend Home Loans Illawarra Credit Union Home Loans La Trobe Financial Home Loans Liberty Home Loans Macquarie Credit Union Home Loans Mortgage House Home Loans Newcastle Permanent Home Loans Peoples Choice Home Loans Peppermoney Home Loans RAMS Home Loans Reduce Home Loans Southern Cross Credit Union Home Loans Summerland Home Loans The Capricornian Home Loans The Mutual Home Loans Tiimely Home Loans Virgin Money Home Loans WLTH homeloans.com.au Home Loans loans.com.au Home Loans
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