A non-bank lender in Australia is, technically, any lender that isn't authorised under the Banking Act 1959, i.e. not an ADI (authorised deposit-taking institution) regulated by APRA. In practice, the term covers a wide spectrum: from billion-dollar specialist mortgage lenders that look almost identical to banks operationally, to small private credit firms writing 30 files a month, to fund managers running mortgage income trusts. They all share one thing, funding sources other than retail deposits.
This guide draws a map of the Australian non-bank lending market in 2026, splits it into three working tiers, and explains where each fits. Written for borrowers and the brokers who introduce them, not as a directory, but as a frame for thinking about which kind of non-bank suits a given file.
Why non-bank lending exists
Australian banking regulation is calibrated for retail deposit protection. The capital adequacy, liquidity, and concentration rules APRA imposes on ADIs are necessary for a system that guarantees retail deposits up to $250,000. Those same rules also narrow the lending envelope ADIs can write, particularly for property, where APRA macroprudential settings have repeatedly tightened serviceability buffers and capped investor lending concentration.
Non-bank lenders fund through wholesale debt facilities, institutional mandates, retail mortgage funds, or balance-sheet capital, sources not subject to APRA prudential rules. The tradeoff is that they typically price wider than ADIs, but with more flexibility on credit policy, serviceability, and speed.
Tier 1: Specialist non-banks (Pepper, Liberty, Resimac, La Trobe)
The tier-two non-banks, Pepper Money, Liberty Financial, Resimac, La Trobe Financial, Bluestone, MA Money, Brighten, are institutional-scale mortgage lenders. Most are listed (or subsidiaries of listed groups), funded through securitisation warehouses, RMBS issuance, and wholesale debt. Loan books run into the billions.
Operationally they look almost identical to a bank: branch-style submission portals, defined credit policies, serviceability calculators, automated decisioning. What differs is the credit envelope, they write lower LVR full doc, higher LVR alt doc, self-employed with 12 months trading, near-prime credit, and specialised security types the majors decline. Pricing sits 0.5-2% above equivalent major-bank rates.
When to use: a credible file the majors decline on policy, where the borrower has 6-12 weeks to settle and wants institutional execution.
Tier 2: Private lenders (Archer Wealth, peers)
Private credit lenders sit one tier deeper. They write smaller loan books but with materially tighter decision loops.
The product set focuses on short-to-medium tenor: 6-36 month first mortgages, bridging, second mortgages, development site acquisition, residual stock, products where speed and flexibility matter more than the lowest rate. Pricing sits 7.85% to 12.5% per annum depending on file profile, LVR, and exit.
When to use: files outside both major-bank and tier-two non-bank envelopes, pre-DA development acquisitions, self-employed with short trading history, complex trading structures.
Tier 3: Niche specialists
Beyond the institutional tier-two non-banks and the private credit firms sits a third tier of niche specialists: SMSF lenders, NRAS-specific lenders, construction-only lenders, mortgage trusts targeting specific asset classes (childcare, medical, aged care), and individual private lenders writing one-off files. Some are genuine specialists; some are opportunistic.
The diligence here matters more than at tiers 1 and 2, credit policy is sometimes informal, funding sources can be thin, and discharge processes vary. The right pattern is to work with niche specialists only when the file genuinely needs the specialisation, and to introduce through a broker who's seen the lender deliver before.
How to compare lenders within a tier
Pricing is the obvious comparison, but it's not where the decision actually lives. Two questions matter more:
- Does indicative equal formal? Indicative terms are preliminary and are not credit approval or a commitment to lend. Final terms depend on credit assessment, valuation, due diligence, funding availability and documentation.
- How is the exit underwritten? A 12-month non-bank loan is a refinance problem in 12 months. The difference between a good lender and a bad one is whether the exit is modelled at submission, with the LVR sized to the post-exit value.
Regulatory frame
Financial services licensing and consumer credit licensing are different regimes. Which requirements apply depends on the entity, its activities, the borrower and the purpose of the credit. An Australian financial services licence does not guarantee an investment and is not a substitute for APRA prudential supervision.
How files run at Archer
Archer Wealth sits in the private credit tier, 7-product suite, written across first and second mortgages, bridging, development, commercial, and short-term property-secured liquidity. Indicative terms are preliminary and are not credit approval or a commitment to lend. Final terms depend on credit assessment, valuation, due diligence, funding availability and documentation.