Non-Bank Lenders gain popularity as investors seek more flexible finance
Non-bank lenders in Australia have grown their share of the financial system, rising from 5% in 2023 to 6% in 2025, according to the Reserve Bank of Australia.
This growth is important for property investors because non-bank lenders can provide flexibility. For instance, traditional banks are restricted by APRA’s mortgage serviceability buffer, currently 3 percentage points. Introduced to ensure borrowers can manage interest rate rises, the buffer was increased during the pandemic and has yet to be lowered, limiting how much banks can lend.
Non-bank lenders are not bound by this buffer, which allows them to offer more flexible home loan options.
For investors, this can mean easier access to finance, opportunities to expand property portfolios and the ability to act on deals that might not meet standard bank criteria.
With non-banks playing an increasingly bigger role in lending, Australians have more ways to grow wealth through property.
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.
