ANALYSIS New research shows brokers are increasingly turning to non-bank lenders for faster, more flexible solutions, with usage for residential loans reaching 84 per cent.
As Australia’s mortgage market becomes increasingly diverse and complex, brokers are increasingly turning to non-bank lenders to access flexible and tailored solutions for their clients, according to The Adviser’s latest Brokers’ Guide to Non-Banks.
Once considered niche players, non-banks are now a mainstream component of the lending ecosystem, particularly for clients who fall outside traditional lending criteria or need a more bespoke approach.
Amid a tightening credit environment, rising property prices, and evolving borrower needs, non-banks are standing out for their adaptability, speed, and service. Many are innovating quickly and leaning into tech-driven efficiencies, while maintaining a strong human touch, particularly through responsive credit teams and strong BDM support.
Gone are the days when non-banks were purely a fallback option. Today, they’re driving competition with the majors and giving borrowers genuine alternatives, while opening up new opportunities for brokers.
How do they stack up?
The latest Third-Party Lending Report 2025, produced by Broker Pulse (the lending insights division of Agile Market Intelligence), sheds light on how brokers view non-bank lenders today.
Surveying 1,000 mortgage and finance brokers between February and April this year, the 16th edition of the report found that broker sentiment towards non-banks remains strong and is improving.
Broker usage of non-bank lenders for residential loans hit its highest point since records began, with 84 per cent of brokers now using non-banks in 2025, up from 74 per cent in 2021. Even the lowest-ranked non-banks still received broadly positive ratings, putting the sector on par with traditional banks.
What’s working?
Brokers have told The Adviser that the non-banks’ biggest advantage lies in their ability to service niche client segments.
“Their flexibility, speed, and willingness to look at the full picture, rather than just ticking boxes, often make them the best solution for self-employed clients, complex income structures, or scenarios where timing is critical,” said Shelley McGinty, owner of Preston Point Capital.
In asset and commercial finance, non-banks are also stepping up. Melbourne broker Will Hamer pointed to their “faster turnaround times” and “credit teams willing to take a common-sense view of a deal”, while Adelaide broker Harry Dubois highlighted their deeper understanding of specialised asset classes.
This flexibility is particularly valuable for SMEs and growing businesses, added Grow Capital’s Gus Gilkeson, who noted that non-banks often provide the best starting point for companies in high-growth or complex industries.
Top performers
The 2025 report once again saw Firstmac claim the title of top non-bank lender, with brokers praising its BDM support, SMSF lending products, and user-friendly portal. Liberty Financial and Pepper Money followed closely, with Bluestone Home Loans leading the smaller non-banks for the sixth year in a row.
Meanwhile, RedZed and MA Money were virtually neck and neck, both receiving strong ratings for their service and innovative approach. Other notable mentions included La Trobe Financial, Resimac, and Advantedge, with brokers singling out their responsiveness and competitive offerings.
Where’s the room to improve?
While non-banks are earning high marks for their flexibility and service, brokers noted several areas that could be sharpened.
Geelong broker Matt Turner said many non-banks “could put much better processes in place” to streamline deals, while Simplicity Loans’ Isabella Constantinou highlighted the need for clearer communication around credit appetite and more investment in tech to speed up applications.
Pricing remains another sticking point. Some brokers said that non-banks could capture even greater market share if they had access to cheaper funding lines. Others suggest a stronger push in consumer education would help dispel misconceptions and build greater borrower confidence.
The road ahead
Despite these challenges, the direction of travel is clear: non-bank lenders are no longer just “plan B” – they’re essential partners in a more specialised, competitive, and fast-moving lending environment.
As Simplicity’s Constantinou put it: “Having lenders that deeply understand the nuances of a particular sector allows brokers to provide better outcomes for clients and navigate deals that might otherwise fall over.”
You can find out more about the changing non-bank landscape, the solutions available from some of the leading players, and what brokers think about the non-bank lenders in the Broker’s Guide to Non-Banks, out now.
[Related: What do brokers think of the major banks?]
