Banks versus non-bank lenders


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Jul 9, 2010( 2 min read )

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Banks, credit unions and building societies are all vying for Australian home loan borrowers business, but which one is best? There certainly is no definitive answer to that, as there’s no two people that have the same financial needs. There is one way to find out which home loan lender is best for you though. Compare. Compare. Compare.

Financial lenders that are not considered a bank are called non-bank lenders. Non-banks lenders consist of credit unions, building societies and mortgage lenders such as RAM’s Home Loans and Mortgage Choice that are not associated with a bank.

Because of their size, non-bank lenders have both advantages and disadvantages when compared to banks, the main ones being:

Advantages

  • Competitive interest rates and fees
  • More likely to be lenient and will usually be more personalised service
  • Broad range of mortgage products

Disadvantages

  • Limited on what products and services they may offer, so you may not be able to use them for all of your financial needs.

If you want to compare, compare, compare, may we suggest you get started with the RateCity mortgage repayment calculator and home loan comparison tool, which allows you to compare over 2000 Australian home loans.

 

 

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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