What other Lenders are there besides banks?
There are also Non Bank Lenders or Mortgage Managers.
In the past, the only Mortgage Lenders were banks, credit unions or building societies. More recently, another Home Loan Lender has emerged: the Mortgage Manager or Non Bank Lender.
Mortgage Brokers & Mortgage Managers - what's the difference?
A Mortgage Broker doesn't actually lend you money. Their role is to facilitate a loan - helping you choose from a range of Lenders.
A Mortgage Manager or Non Bank Lender, on the other hand, does lend money. Non Bank Lenders go into the financial markets, obtain funds, and then offer those funds to borrowers at particular terms.
Some companies can be both Mortgage Brokers and Mortgage Managers. They can facilitate loans with traditional Lenders like the banks, as well as offering loans where they act as Non Bank Lenders - sourcing the funds themselves.
To help find the right Bank Lender or Non Bank Lender for you,contact your nearest MFAA member.
Want another Mortgage & Home Loan tip?
Home Loan Calculator: how much can I borrow? Check out Essential #08