According to the recent AFR article titled ‘Non-banks raise $15b for mortgages the banks couldn’t write’, Australia's non-bank lenders are making significant strides in the Australian financial landscape raising an impressive $15 billion last year to fund mortgages that don't fit the strict serviceability standards set by major traditional banks.

This marked a substantial 30% increase from the previous year, highlighting a dynamic shift towards these non-bank lenders, such as Credit Connect Group, as a key resource for borrowers sidelined by traditional banks.  

With the first quarter of this year already seeing $4.45 billion in similar deals, it's clear that the momentum is not slowing down. This surge is partly fueled by the activation of wholesale funding markets, which has effectively reduced capital costs for the non-bank sector, making it a more attractive avenue for both lenders and borrowers alike.

The crux of this shift can be attributed to the tight lending rules imposed by regulatory bodies, which, according to chief executives of the country’s largest traditional banks, have inadvertently nudged borrowers towards these alternative lenders.  

According to the AFR article, non-bank lenders, such as Credit Connect Group, operate outside restrictions imposed on traditional banks thus offering them a unique position to serve customers who fall just outside the traditional lending criteria without the burden of APRA oversight.

As we navigate through these developments, it's becoming increasingly clear that non-bank lenders are not just a temporary fixture but a growing force in Australia's mortgage market. With their ability to offer more flexible lending solutions, they are slowly bridging the gap between what the banking sector can provide and the needs of the modern borrower.  

To read the AFR article in full, you can find it here.

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Benefits of Borrowing with CCG:

1. Better access to funds
2. Trusted and experienced
3. Fast approval and settlement times
4. No hidden fees
5. Flexible loans
6. Fixed rate, interest only
7. Tailored funding

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If you have a scenario you are having trouble settling via your usual financial sources, you can speak to one of our BDMs on 1300 795 507 or email info@ccg.com.au.