12/12/2024
Non-conforming lenders have become an essential part of the Australian mortgage landscape, helping borrowers who may not meet the stringent requirements of traditional banks. These lenders specialise in offering home loans to individuals who might have poor credit history, irregular income, or a smaller deposit. While non-conforming loans are often seen as riskier than standard bank loans, they can provide a much-needed path to homeownership or debt consolidation for many Australians.
For mortgage brokers, finding the right lender for clients who may fall outside of the traditional lending criteria can be a daunting task. This is where we can make a significant difference, by offering a range of non-conforming products and assisting brokers in finding the best product to suit the unique needs of their clients.
What Are Nonconforming Lenders?
Non-conforming lenders, also known as non-bank lenders, are financial institutions that specialise in providing home loans to individuals who do not meet the strict criteria of traditional banks.
Which Borrowers Do Non-conforming Lenders Suit?
Non-conforming lenders fill a vital gap in the mortgage market by offering loans to borrowers who fall outside of the traditional lending criteria. This includes:
- Borrowers with poor credit history: If someone has missed payments or defaults on past loans, traditional banks may be unwilling to lend. Non-conforming lenders can help these borrowers with higher-interest loans, offering them a chance to repair their credit history and eventually transition to a mainstream lender.
- Self-employed borrowers: Many self-employed individuals struggle to provide the required financial documentation that banks typically demand, such as tax returns or payslips. Non-conforming lenders can work with self-employed borrowers with little or no documentation, making them an attractive option for this demographic.
- Borrowers with limited savings or small deposits: For those who don’t have a significant deposit saved, banks often impose strict requirements that can prevent them from qualifying for a loan. Non-conforming lenders, on the other hand, are often more flexible and can offer loans to people with smaller deposits or irregular savings patterns.
- Investors reaching their borrowing capacity: Property investors who have already reached their borrowing capacity with mainstream lenders can find relief through non-conforming lenders, who may be more willing to lend based on their existing portfolio.
How we help
FINSTREET offers several unique solution for mortgage brokers seeking to help clients who may not qualify for loans from traditional banks. Here’s how we can make a difference:
- Wide Range of Lender Options: We work with multiple non-conforming lenders, meaning brokers can access a variety of loan products to match their clients’ unique situations. This makes it easier for brokers to find the right lender without having to search multiple sources.
- Streamlined Comparison Process: Rather than spending hours comparing different non-conforming lenders individually, we allow brokers to compare rates, terms, and features in one place. This simplifies the process and ensures that brokers can find the best product quickly.
- Expert Advice: We also offer expert guidance and insights to help brokers navigate the complexities of non-conforming lending. Whether a borrower has a poor credit score, a small deposit, or irregular income, we provide the support brokers need to make informed decisions.
- Tailored Solutions for Borrowers: Every borrower is unique, and we understand this. By offering a range of non-conforming loan options, brokers can find solutions that suit each client’s individual circumstances, ensuring they receive the best possible outcome.
Working with us, as the trusted brand for non-bank lending offers the opportunity to easily compare multiple non-conforming lenders and find the right products for their clients. With a variety of options and expert support, we help brokers deliver tailored solutions that meet the unique needs of borrowers, ensuring they get the best deal possible.
