Non-bank lenders help all kinds of borrowers who historically have been able to borrow easily, but today don't quite fit in with mainstream banking guidelines and regulations.
Australians who want to own their own home, consolidate debt via a mortgage, refinance an existing home or buy a residential investment property have more choices than they might first think about when it comes to deciding on a home loan provider. With over 20 years of home lending experience, c2Loans is a fast growing non-bank that specialises in home and investment home loans. In Australia, “non-bank” is a relatively new term. Read on to find out exactly what makes c2Loans a non-bank, how we differ from other financial institutions and whether a c2Loan home loan may be right for you.
In the most basic terms, non-banks don’t offer everyday, deposit and withdrawal, bank accounts.
When it comes to home loan lenders, borrowers have three main choices - banks, mutuals and non-banks lenders.
Both banks and mutuals offer deposit accounts and are classified as 'authorised deposit-taking institutions' (ADI's) and are regulated by the Australian Prudential Regulation Authority (APRA).
Non-banks do not offer deposit accounts, so they are not classified as ADI's and are not regulated by APRA. However, non-banks are required to follow the Consumer Credit Code which governs all Australian credit transactions and the Australian Securities and Investment Commission which ensures all lenders are transparent with fees and rates.
Non-banks usually rely on wholesale funding to fund their home loans. As the mortgage market has become so competitive, most non-banks now offer the same features and products as the other lenders.
In addition, as a non-bank c2Loans takes a much more personalised approach to credit assessment. Unlike mainstream banks, we don’t use automated credit scorecards. Instead we have a team of specialists who personally assess each new customer’s circumstances.
c2loans products are provided by Sintex Consolidated Pty Ltd, trading as Loanworks.
Permanent Custodians Limited ACN 001 426 384 (operated by BNY Mellon Australia Pty Limited) acts as an independent trustee for the funding trust and because of this appears on the associated loan documentation as the lender of record and mortgagee. This structure is typical of non-bank lending arrangements.
c2Loans offers a flexible, phone-based service so you don’t need to leave the comfort of your home to apply for a home loan.
Our lending specialists focus on each individual customer, from application through to settlement. We pride ourselves on competitive rates and our ability to keep you informed and supported through every step of the loan process.
Not every borrower is going to fit the mould for a prime home loan. Some borrowers require a specialised home loan to suit their circumstances or need to have their loan assessed on its merits rather than relying on automated assessment through score cards. Non banks can provide lending solutions that can enable borrowers to get home loans that could have been potentially declined by the major banks.
As non-banks are smaller, you have the opportunity to get personalised service and really get to know your lender. For borrowers who want to get a firsthand understanding of their home loan and its features, non-banks can provide this.
Having difficulty getting a loan from the bank at the moment? Well you’re not alone, non-bank lending reached an 11-year high in September 2018.
The big banks seem to have turned off the tap, especially to property investors, making many home buyers curious about non-bank lenders. Whether a non-bank solution is right for you comes down to what you wish to achieve.
For self-employed customers it’s important that we accept a variety of ways to demonstrate income - via an accountant’s letter or bank statements for example. Because these customers are business owners, knowing that they can use the equity that have built in their home to borrow funds for business expansion is also a bonus.
For other customers the value-add of a non-bank is knowing that there’s a way they can get a loan without having to deal with a bank.
In the past, non-bank lenders were often viewed as the last resort, but this is certainly no longer the case.
Whereas, previously, they had a reputation – rightly or wrongly – as lenders for people with bad credit histories, it’s clear that they are creating a new persona that can benefit borrowers.
And that means opportunities for investors who want to make the most of the current softer market conditions.
Today non-bank lenders are financially secure institutions that must comply with the same consumer credit rules and regulations as the banks.
Many have a range of products and interest rates that are competitive with the big banks.
If you think c2Loans might be an option for you, reach out to one of our home lending specialists by calling 9529 2655 or by requesting a quote