Jul 10, 2019
Welcome to Finance and Fury, the ‘Say What Wednesday’ edition. Today I’m here with Jayden!
Today’s question comes from Gavin,
“Is there anything to be considered when looking at refinancing mortgages with smaller lenders that run their business online like reducehomeloans.com.au with rates of 3.19%, versus the larger lenders?”
Great Question!
Types of Lenders
What are non-bank mortgage lenders?
A non-bank mortgage lender is a financial institution that offers home loans but is not a bank
Is a mortgage with a small lender better due to being cheaper?
How it Works
Watch out for these red flags
Can be confusing – so see what Laws apply to small lenders to see where they fit
Are small lenders likely to fail or collapse?
Summary
Borrowers should look for a lender that is regulated by APRA as well as the usual credit laws, is not connected with recent bank failures, and doesn’t raise any red flags when you’re researching their loan options.
Make sure they have an Australian Credit Licence, External Dispute Resolution Scheme (AFCA) and are reputable.