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Who Are the Lenders in Australia?

Roland Nguyen
May 4, 2022
who are the lenders in australia

Australia is home to numerous lenders who provide a variety of services. But before applying for a loan, weighing your options is important since each lender has a different set of standards that they use to evaluate loan applications.

That's why in this blog post, we'll walk you through the different types of lenders in Australia, from huge banks to private lenders.

First Tier Lenders

major lenders in australia

First Tier lenders are seen as a more reliable option for finance since they have good customer service and a simple application process. The loans in the first tier are traditional mortgage-backed loans held by banks and regulated by the government, so you will feel safer if you apply for loans with the first tier lenders.

However, you need to expect that they have stricter rules and lending conditions. To start with, here are the first tier lenders or also called the major banks in Australia.

  1. Commonwealth Bank
    The Australian government formed it in early 1911, and it opened its doors in Sydney. In addition to retail, business, and private banking, funds management, superannuation, insurance, investment, and broking services, the Commonwealth Bank also offers a range of other financial services. They were also  Australia's largest bank with more than 800,000 stockholders. (source: wikipedia)
  2. National Australia Bank
    Headquarters in Melbourne. NAB is one of Australia’s largest banks, with over 12.7 million customers across the country. They offer a wide range of banking and financial services including house and general finance, international banking, investment banking, wealth and fund management, trustee and nominee services. (source: Forbes)
  3. Australia New Zealand Bank
    Established its headquarters in Melbourne. ANZ is one of the five largest companies in Australia and a major international banking and financial services group that is among the top 50 banks in the world. It provides a range of financial products and services to more than 5 million customers.  (source: unepfi.org)
  4. Westpac Banking Corporation
    One of the oldest banks in Australia. It has gained the trust of most Australian citizens over the years because of its long history. The bank divided its operations into 6 divisions: Consumer bank, business bank, Westpac Institutional Bank (WIB), Westpac New Zealand, Specialist Businesses, and Group Businesses. (source: Kalkine Media)
  5. Macquarie Bank
    It is a global financial services group and the largest investment bank founded in early 1969 with its headquarters in Sydney. Macquarie offers a wide-ranging of services including asset management, financial advisory, and risk and capital solutions.

Second Tier Lenders

Second Tier lenders are like credit unions since they source their funding from other sources other than customer deposits. Lending companies in second tier are tightly regulated by consumer credit governing bodies, they may have competitive rates, but they offer solutions to clients who do not match the usual lending standards of banks.

Here are some of the second tier lenders in Australia:

  1. Bankwest
    It is an Australian full-service bank founded in 1895 and was based in Perth. They offer services including transaction accounts, saving accounts, home loans, term deposits, and credit cards. However, it was sold to the Commonwealth Bank of Australia for AUS$2.1 billion last October 2008 and operates as a division of its parent company.
  2. St. George Group
    It was previously an independent bank until they merge with Westpac in 2008 and become its parent company. The bank primarily provides its services in New South Wales but has also expanded its services in other states with its national network – Bank of Melbourne and Bank of South Australia. 
  3. Heritage Bank
    Australia’s second-largest mutual bank. It was founded in 1875 and established its head office in Toowoomba, Queensland. The bank has a wide variety of financial services and sells home loans via a network of mortgage brokers in every state.
  4. ME Bank
    It is a direct bank based in Melbourne and became a subsidiary of Bank of Queensland last July 2021. ME Bank offers low-cost banking products including home loans, savings accounts, credit cards, term deposits, and transaction accounts are among the available.

Specialist Lenders

Specialist lenders or also known as non-conforming lenders, provide mortgages to clients who are unable to obtain financing from standard banks. This covers borrowers with poor credit, as well as those who are self-employed, work on a part-time basis, or are new to Australia.

Here are some of the Specialist Lenders in Australia:

  1. La Trobe Financial
    It is an Australian credit asset manager specialising in asset management and credit located in Melbourne with corporate offices in Sydney, Shanghai, and Hongkong. The company provides a wide range of services which includes wholesale term debt funding, asset origination, mortgage finance solutions, real estate credit, investment account, and wealth and management services. 
  2. Liberty Financial
    It is an Australian non-bank lender that was formed in 1977 offering a broad range of loans for your home, car, business, and personal needs. They have helped over 600,000 customers by advancing more than $28 billion in funds.
  3. BlueStone
    Fast-growing lender specializing in residential home loans with over 270 professionals across Australia, New Zealand, and the Philippines. They have their head office in Sydney, Australia, and have helped 51,000 Aussies and 13,000 Kiwis.  Furthermore, they also offer financial services including refinancing, purchasing a home, or investing in residential property. 

Private Lenders

Private lenders are not affiliated with a bank or credit union, but individuals and corporations can still borrow money from them. Here are some of the private lenders in Australia:

  1. Homesec
    It is a privately funded business finance corporation with Australian ownership. They specialize in interest-only first and second mortgages and short-term business bridging loans, sometimes known as short-term caveat loans. Their main offices are in Melbourne, and they have law firms in each of the country's states.
  2. Arthurmac
    They have 30 different institutional and bank lenders including specialist lenders which allowed them to help thousands of Australians who are in need of financial services or investment. They are offering flexible residential and commercial mortgages to their borrowers, and unique opportunities for their investors.
  3. Oak Capital
    First established in 2013 as a specialist mortgage lender, they are specialising in lending to SME clients secured by real estate assets. They have helped hundreds of Australians with their financial needs, while also providing their investors with unique opportunities. 
  4. Prime Capital
    They help mortgage brokers settle more loans for their clients with their complete range of specialist mortgage products. Prime Capital provides loans of up to $10 million at interest rates from just 4.95% p.a.

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