The Surprising Benefits of Non-Bank Lenders for Your Home Loan
Deciding where to go for your home loan is one of the most important decisions you’ll make. While many prospective property owners will choose to use a mainstream lender, non-bank lenders also have their advantages.
Selecting the institution from which to obtain your home loan is a crucial decision. While many prospective property owners opt for mainstream lenders, non-bank lenders present distinct advantages as well.
What are non-bank lenders?
Non-bank lenders are essentially lenders that are not banks, credit unions, or building societies. They source funds from their own resources, which they lend out with a profit margin.
Alternatively, non-bank lenders may be companies or individuals who borrow money from a bank at wholesale rates and then lend the money to borrowers with a profit margin included.
Most mortgage brokers work with both banks and non-bank lenders.
Potential benefits of a non-bank lender
There are several advantages associated with obtaining your home loan from a non-bank lender, including:
Lower overheads, resulting in generally lower fees.
Non-bank lenders typically have smaller overheads because they have fewer offices and lower marketing and labour expenses. This can result in better rates and lower fees.
Customer service.
Non-bank lenders strive to provide more personalized service as they tend to have a smaller customer base. You are more likely to receive individualized attention throughout the home loan process, even after signing the contract. Additionally, while you may have to interact with multiple personnel at a large bank, non-bank lenders usually assign one person to work with you from start to finish.
Approvals.
Approval of home loans by large banks may take time. A smaller non-bank lender may approve your loan application more quickly because you could be dealing directly with the decision-maker.
Range of choices.
Given the numerous non-bank lenders available, you have a higher probability of finding one that fits your particular needs and circumstances. Choose what works best for you!
Selecting the right lender for your home loan is of utmost importance, as it will impact your finances for years to come. Whether you choose a big bank or a non-bank lender, it's essential to weigh the pros and cons carefully. Remember, you will be making the repayments, so it's crucial to be satisfied with the rates, service, and fees. At Alecto Finance, we understand the importance of finding the perfect lender that fits your unique situation. Our team of experts is always available to discuss your options and help you make an informed decision that will benefit you in the long run.
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