Winners of Brokers on Non-Banks 2024 announced
Mortgage Professional Australia is delighted to announce the results of its comprehensive 2024 Brokers on Non-Banks survey.
The report highlights the evolving broker-lender relationship within Australia’s mortgage industry, with non-bank lenders increasing their foothold.
By offering competitive rates, efficient service and flexible solutions, non-banks are becoming an attractive alternative for brokers navigating the complexities of today’s lending environment on behalf of clients who often don’t meet the criteria of banks.
The Brokers on Non-Banks 2024 survey collected responses from hundreds of brokers across Australia, evaluating non-bank lenders in 10 categories.
The results showcased the nation’s top performers, demonstrating the growing strength of non-banks in catering to broker needs in a dynamic and challenging market.
Growth of non-bank lenders in Australia
Non-banks continue to grow their market share, now representing 16% of Australia’s commercial real estate debt (ACRED), up from 10.4% in 2020. This growth reflects non-banks’ ability to address areas that traditional banks may overlook, particularly when it comes to serving niche markets and more complex borrower needs.
Gerald Foley, managing director of NMB, remarked on this trend, noting that major banks have tightened their lending criteria, often limiting their appetite for non-standard loan applications.
“Non-banks see less volume and try to understand individual borrower needs and price risk accordingly. We’re seeing more complicated cases, especially with self-employed borrowers, that banks struggle to accommodate,” Foley told MPA.
David McQueen, CEO of Loan Market, further elaborated on the competitive edge non-banks hold in the broker channel. He emphasised that many of the sector’s top business development managers (BDMs) and credit assessors were employed by non-banks, which helped brokers feel confident in the products and service levels they could offer clients.
“As funding has become more expensive and challenging, non-banks have tilted away from competing against the majors to increase their focus on policy and serving niches,” McQueen said.
The 2024 Brokers on Non-Banks report results highlight a continued trend towards brokers incorporating non-banks more frequently into their offerings. As the mortgage market becomes more competitive, non-banks are emerging as significant players that meet both broker and borrower expectations.
Selection process for Brokers on Non-Banks 2024
The Brokers on Non-Banks 2024 survey assessed non-bank lenders across 10 key performance areas:
- BDM support;
- brand recognition;
- commission structures;
- communications, training, and development;
- credit policy;
- interest rates;
- online platforms and services;
- product diversification;
- product range; and
- turnaround times.
Each non-bank lender was scored out of five in these categories by participating brokers.
To be included in the survey results, a minimum response rate of 10% of brokers per non-bank lender was required.
Brokers were also asked about their business interactions with non-bank lenders and about additional non-banks they would like to see on their aggregator’s panel, though these responses did not affect the rankings.
The survey also asked brokers to provide insights on non-bank lenders’ offerings in specific areas such as specialist lending, first home buyers, property investment, commercial lending, alt doc loans, SMSF loans, and lending to foreign non-residents.
Best non-bank mortgage lenders in Australia 2024
Bluestone Home Loans which offers home loan products tailored to meet the diverse needs of Australians, is the overall winner this year. Founded in Sydney in 2000, Bluestone has grown into one of Australia’s leading specialist residential home loan lenders.
Taking the overall silver medal in second place was Pepper Money, while third spot went to RedZed.
You can see the full list of winners by reading the MPA Brokers on Non-Banks 2024 special report.
