Non-bank lenders gain ground as borrowers seek more flexible options
Major banks still dominate the lending landscape, but there’s a quiet shift underway.
According to PEXA’s First Lender Mortgage Trends report, nonbank lenders, otherwise known as non-ADIs (non-authorised deposit-taking institutions), are steadily gaining ground in Australia’s residential mortgage market.
In the 12 months to June, major banks finalised around 190,000 new home loans across New South Wales, Victoria and Queensland, with a year-on-year growth of 3.9%. Meanwhile, non-ADIs experienced a sharper rise in demand, with new loan volumes climbing 25.3% over the same period.
So what’s fuelling the rise? Well, part of the reason is that non-ADIs are offering more flexible home loans, making them an attractive option for borrowers with non-traditional income streams or complex credit profiles. For both homeowners and those focused on property investment, this shift means greater choice and the chance to align lending solutions with long-term goals.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.