Non bank lender

What is a non bank lender?

A non bank lender is any lender that is not an authorised deposit-taking institution (ADI). It does not hold a banking licence under the Banking Act, does not take customer deposits, and is not regulated by APRA as a bank. Funding for the loan book comes from a mix of wholesale debt markets, securitisation programs, private capital, family-office balance sheets, and specialist funds.

"Non bank lender" covers a broad spectrum: large securitised consumer home-loan players (Pepper, Liberty, Resimac), specialist commercial and SME lenders, asset finance lenders, short-term business loan providers, and private credit lenders writing first and second mortgages against real estate. Each segment has its own pricing, policy and regulator footprint.

How is a non bank lender regulated in Australia?

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.

Non bank lender vs bank: the practical differences

• Funding source. Banks fund primarily from retail deposits and the wholesale market. Non bank lenders fund from wholesale debt, securitisation, and private capital.
• Regulator. Banks are regulated by APRA as ADIs. Non bank lenders are regulated by ASIC.
• Speed. Non bank lenders typically decision files faster than the banks.
• Policy flexibility. Banks decision files primarily against documented policy and serviceability calculators. Non bank lenders apply commercial judgement to the security, sponsor and exit on each file.
• Pricing. Banks typically win on long-term rate for files that fit their policy. Non bank pricing is higher to reflect the cost of non-deposit funding and the shorter-dated nature of the facilities.
• Product set. Non bank lenders write products the banks rarely do: short-dated bridging, second mortgages, capitalised-interest facilities, low-doc business loans against equity.

When does a non bank lender make sense?

The pattern is usually one of three: the file is sound but outside standard bank policy on income evidence, security type or transaction speed; the borrower needs to settle faster than a bank credit process allows; or the structure required (bridging, second mortgage, capitalised interest, short-dated facility) is not something the majors offer.

For a fuller comparison, see private credit vs bank lending.

Where Archer Wealth fits in the non bank market

Archer Wealth is an Australian non bank lender writing real-estate-backed business and investment loans through accredited brokers. Six-product lending suite covering residential and commercial first mortgages, second mortgages, bridging, fast settlement, commercial property and vacant land.

See the lending suite for product detail, or the private credit page for the broader asset class context.

How to choose a non bank lender

Two things matter more than headline rate.

• Credit team access. Strong non bank lenders have a credit team that makes real decisions on files. Ask your broker how decisions are made and at what level.
• Funding source transparency. Where the lender sources its capital affects how it underwrites, prices and behaves through cycles. Reputable lenders are comfortable answering this question.

Frequently asked

• What is a non bank lender?
  A non bank lender is a lender that is not an authorised deposit-taking institution (ADI). It does not take customer deposits and is not regulated by APRA as a bank. Funding comes from wholesale debt markets, securitisation programs, private capital, or a combination.
• How is a non bank lender regulated in Australia?
  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.
• What is the difference between a non bank lender and a bank?
  Banks are authorised deposit-taking institutions regulated by APRA under the Banking Act. They fund lending primarily from retail deposits. Non bank lenders are not deposit-takers and are regulated by ASIC. Banks usually win on rate and standard policy fit; non bank lenders win on speed, structuring flexibility and capacity to write files outside standard bank policy.
• Are non bank lenders safe to borrow from?
  Borrowers should confirm the lender or its broker channel is on the relevant industry body register, and read the loan documents carefully before signing.
• When does a non bank lender make sense?
  Three main patterns. First, the file is sound but does not fit bank policy (income evidence, security type, transaction speed). Second, the borrower needs to settle faster than a bank credit process allows. Third, the structure required (bridging, second mortgage, capitalised interest, short-dated facility) is not something the major banks offer.
• What does a non bank lender charge?
  Pricing varies widely by product, security and risk. As an indicative range, Archer Wealth pricing starts from 7.99% p.a. on prime residential first mortgages, from 7.99% p.a. on commercial first mortgages, with establishment fees from 1.50% of the facility, excl. GST. Specialist non bank lenders (sub-prime, second-tier consumer, short-term business loans) sit higher.
• Do non bank lenders write home loans?
  Some do, there is an established non bank consumer home loan market in Australia. Archer Wealth is not in this market.
• Can I borrow directly from a non bank lender?
  It depends on the lender. Some non bank lenders write retail consumer files directly; others operate broker-channel only. Contact our team to discuss the submission process.