So you don't tick the box for a certain bank's home loan? No worries, alternative lenders can help

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So you don't tick the box for a certain bank's home loan? No worries, alternative lenders can help

So you don't tick the box for a certain bank's home loan? No worries, alternative lenders can help

Not every borrower will be a perfect fit for a loan from one of the major lenders.

That’s okay; it happens more than you might think.

Quite simply, we all have different lifestyles and financial histories, and not everyone fits into the same lenders’ policy criteria. For example, being self-employed for only a short time frame has slightly different requirements to those employed in a full-time PAYG role. Or it’s possible there may be some unforeseen hiccups in your credit history. Whatever the case, it doesn’t necessarily mean your home ownership plans are off the table.

There are other options.

They’re called alternative lenders, sometimes known as non-bank lenders, and they often work with people who don’t quite tick all the usual boxes.

We’ve worked with many of these lenders to help clients find the right loan. Here’s our guide to the “alternatives” if a bank lender isn’t for you.

 

What are alternative lenders?

These are lenders that aren’t banks. They might be specialist finance companies, credit unions or smaller institutions that focus on different types of borrowers.

They’re still regulated in Australia, and they still have to follow the same compliance rules that protect you as a borrower. But they tend to be more flexible when it comes to who they’ll lend to and how they assess your application.

 

Who might use an alternative lender?

Alternative lenders often help people who:

•    Are self-employed or work freelance.

•    Have had credit issues in the past.

•    Don’t have the usual PAYG payslips.

•    Are recent migrants without a long Australian credit history.

•    Want to consolidate debts while applying for a mortgage.

•    Own a small business and have complex finances.

These types of lenders look at your situation slightly differently than the big banks might and are open to more unique personal scenarios.

 

Are there any downsides?

Like most things in finance, it depends on each unique situation.

Alternative lenders can sometimes charge higher interest rates or fees than major banks. That’s because they’re taking on more risk. But it’s not always the case, and sometimes rates are surprisingly competitive. And each alternative lender has their own individual loan features and criteria.

We work with many alternative lenders and can help you find a solution that best suits your needs.

 

So, how do you know if this is the right move?

There’s a lot to weigh up. Rates, fees, flexibility and how the lender will assess your specific situation. An experienced mortgage adviser can look at the whole picture and help you figure out if an alternative lender is a viable option – or if there’s another way forward.

There’s no need to figure it all out yourself. At Sky Blue Finance, we’ve helped many customers who don’t tick all the bank boxes find a lender. We’re ready to do the same for you, so get in touch today and we can start looking at your options.

📞 Call Peter on 0414 602 491
📧 Email Peter at info@skybluefinance.com.au​

Note: The above information is general in nature and does not constitute personal financial advice. It has been prepared without taking your unique objectives, financial situation or needs into account. You should seek your own independent advice as to whether or not this information is appropriate for you.

Image: RDNE Stock project via Pexels

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