A Non-Bank lender, previously referred to as a ‘Second Tier Lender’, is an organisation you can borrow money from for a home loan, business purchase or cashflow reasons, construction or property development, debt repayment or finance of an asset. In more recent times, largely due to changes in behaviour of the main banks and their enthusiasm for ‘outside the box’ lending, they have grown their market share from three to five percent of the New Zealand lending market. This is predicted to increase to 10-15% within the next few years.
Non-bank lenders are funded in several ways including through the main trading Banks, Institutional Lenders the ‘Peer to Peer’ model, or self-funding. They all have their preferred niche and target client – e.g., property developers, long-term mortgages, property investors, business owners, discharge from bankrupt, asset finance.
The general ‘tiers’ within non-Bank lending are described below:
Meta Financial Solutions are experienced in all classes of non-bank lending and have excellent relationships with multiple lenders. We are actively seeking to grow our client’s knowledge and usage of them, because too often we see people take a “No” from the bank as a “That means it’s impossible!” and proceed no further with their wealth creation goals.
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This calculator is intended as a guide only and is based on the Residential Owner Occupied rate. It is not intended to provide advice, and is not a quote or an offer of finance by any lender.