Non Bank Investment Property Lender

Non-bank lender is a broad category. It describes any lender that does not hold an authorised deposit-taking institution licence -- no bank charter, no deposit-taking from the public. That definition covers a wide range of lenders with very different products, pricing, and assessment criteria. Understanding where each type sits helps borrowers identify the right option for their situation rather than applying to the wrong lender and losing time.

Secured Lending is a private lender operating within the non-bank category. This page explains the full landscape and where we sit within it. All lending is business purpose only, to Pty Ltd companies, family trusts, and SMSFs. Loans from $250,000 to $10,000,000 secured against residential investment property.

The Non-Bank Lending Spectrum

At one end are near-bank alternatives: credit unions, mutual lenders, and fintech mortgage lenders. These lenders use income-based assessment models similar to banks, offer long-term facilities at competitive rates, and are regulated by ASIC under the National Consumer Credit Protection Act for consumer lending. They are largely interchangeable with banks for borrowers who qualify. They may have slightly more flexibility on certain income types but they are not meaningfully different from a bank for corporate borrowers with complex structures.

In the middle are specialist mortgage lenders and non-conforming lenders. These lenders use modified income models that give more weight to alternative documentation -- BAS statements, accountant declarations, rental income. Terms are typically 20 to 30 years. Rates are higher than banks but lower than private lenders. Settlement takes weeks rather than months. These are the lenders that corporate borrowers should plan to refinance to after a private lending term.

At the other end are private and short-term lenders. Assessment is asset-based: the decision turns on the security property, the LVR, and the exit. There is no income model to satisfy. Terms are 1 to 24 months. Rates reflect the speed, flexibility, and absence of an income floor. Settlement in 24 to 72 hours is achievable for clean deals. This is where Secured Lending operates.

Why Corporate Borrowers Use Non-Bank Lenders

• •Bank income models assess company and trust income conservatively, often excluding retained profits and trust distributions
• •Banks require 2 to 3 years of financial statements for the borrowing entity -- many corporate borrowers cannot satisfy this
• •Bank approval timelines for complex entities run 4 to 12 weeks, which does not fit time-sensitive transactions
• •Some banks have reduced or exited lending to specific entity types, leaving borrowers without a direct relationship lender
• •Non-bank lenders can price and structure deals that sit outside standard residential mortgage guidelines

Choosing the Right Non-Bank Lender

The right choice depends on what you need the loan to do. If you need a long-term facility and can document income through an alternative method, a specialist mortgage lender is the right target -- lower rate, longer term, no exit pressure. If you need to move within days, or if your income position does not satisfy any income model regardless of documentation, a private lender is the right starting point with a specialist lender as the planned exit.

Applying to the wrong lender costs time. A corporate borrower with a complex trust structure and a 10-day settlement window should not be spending that time in a specialist lender's documentation queue. Understanding the landscape upfront saves weeks.

Three Scenarios Where Non-Bank Lending Was the Answer

A Pty Ltd company with a strong property portfolio but variable annual revenue needed to refinance a maturing facility urgently. Its bank would not proceed due to serviceability concerns. A specialist non-bank lender could have worked but needed six weeks. We settled the refinance in 48 hours and the company moved to the specialist lender at the end of a 9-month term once its financial statements were finalised.

A family trust with three investment properties needed to release $380,000 in equity to fund a business expansion. Its primary bank had a 45-day processing time for equity release applications. The specialist non-bank lenders the trust approached could move in two to three weeks but the business opportunity required funds within five days. We assessed and settled within 72 hours. The trust refinanced the equity release to its specialist non-bank lender four months later.

An SMSF needed to complete an LRBA purchase where the specialist SMSF lender it intended to use was in a credit review and had temporarily paused new applications. We provided a 6-month bridging facility under the LRBA structure while the trustees arranged an alternative specialist lender. The bare trust structure remained in place throughout and the transition to the long-term facility was straightforward.

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