Buying your home is an exciting step - but it can be frustrating to obtain your finance. If the bank has turned you away, do you have any other options?
Let’s rewind to the property landscape five years ago, where the norm was seeking financing from traditional banks. Around 95% of individuals opted for this route, leaving a mere 5% curious about what non-bank lenders had to offer. Fast forward to today, and this ratio has shifted significantly, with non-bank lending now constituting at least 25% of the property financing space.
So, what’s driving this change, and who stands to benefit?
Non-bank lending has become a lifeline for the self-employed, particularly those lacking a robust two-year financial history. Whether you're diving into property transactions or eyeing commercial real estate, situations that may not align with a traditional bank's criteria find a place in the realm of non-bank lenders.
This shift isn’t about promoting non-bank lenders but recognizing the diverse opportunities they present. They often cater to those with a more complex financial history, like credit issues that may have sidelined them from traditional banks for up to five years. Non-bank lenders take a holistic approach, considering your current stability, job security, and overall positive financial outlook.
Life, as we know, isn't a straight line. Non-bank lenders understand this, making them open to working with individuals who have faced challenges such as relationship breakdowns, failed businesses, or other significant life events. They accommodate a variety of scenarios, from self-employed ventures to traditional employment, construction endeavors, and even dreams of venturing into commercial properties.
While opting for non-bank lending may come with slightly higher interest rates and the absence of cashback perks, the key takeaway here is the flexibility they offer. When traditional banks might say 'no' due to rigid policies, non-bank lenders might say, 'let's explore possibilities.'
So, if you're considering property ventures and the traditional banking route feels too confining, it's worth recognizing that non-bank lending exists as a potential avenue, bringing a range of possibilities to the table. Here at NZ Mortgages, we work with over 25 non-bank lenders, so if you think finance may be an issue, come have a chat with our friendly team and we can make your property dreams a reality.
Key Words: non-bank lending, property investment, self-employed, commercial properties, credit issues, financial flexibility, traditional banks, unique opportunities.
.avif)
