When exploring home loan options, we often think of banks as our go-to source. However, in New Zealand, there’s an array of non bank lenders that offer competitive and flexible lending solutions.
These lenders can be a lifeline, especially for those who might not meet the strict lending criteria of traditional banks due to self employment, a less-than-perfect credit history, or other unique financial situations.
Non bank lenders have grown in popularity, providing tailored loan products that fit various needs. These can include:
-
- First home buyers with low deposits
-
- Buyer’s who’ve bought another home before selling their existing one
-
- Loans for home improvements and renovations without refinancing your existing mortgage
-
- Investment property loans
-
- Reverse mortgages for retirees
-
- Loans for construction, subdivisions and development
-
- Loans for business owners with equity in their existing mortgage
-
- Farming, livestock and rural loans
-
- And loans for those with poor credit history, or major life event that has negatively affected their borrowing power.
Our non bank mortgage brokers are highly experienced in non bank lending. We’ve gathered insights on some of the best non bank mortgage lenders in New Zealand, to help you understand how these loans can be used, and explore your options.
Table of Contents
Non Bank Mortgage Lenders in New Zealand
In New Zealand, there are many non bank mortgage lenders that offer a variety of loan products. Here’s a list of some notable non bank mortgage lenders in New Zealand:
Avanti Finance
Products: Home loans, personal loans, car loans.
Unique Selling Proposition: Quick processing and flexible loan terms.
Typical Customer Profile: Individuals needing fast financing or those with varying income.
Application Process: Streamlined online application with customer service support.
Avanti Finance provides a range of lending products including home loans, personal loans, and car loans. They are known for their flexible criteria and personal approach to lending.
They have a 3.7 star rating from 286 Google reviews. Their commitment to customer service is evident with all reviews receiving responses.
Liberty Financial
Products: Home loans, car loans, business loans.
Unique Selling Proposition: A wide range of products catering to different financial needs, including non-standard incomes.
Typical Customer Profile: Wide range, from first-home buyers to investors and small business owners.
Application Process: Comprehensive application process with options for both online and broker-assisted submissions.
Liberty Financial offers a comprehensive range of products including home loans, car loans, and business loans. Liberty is recognised for their flexible lending solutions that cater to a wide range of needs.
They lend up to 90% LVR and can be a good choice for those with low deposits. Liberty have been in the New Zealand market since 2007, and offer excellent flexibility with their loans such as extra repayments, redraw facilities, and both fixed and floating interest rate options.
Pepper Money
Products: Home loans, personal loans.
Unique Selling Proposition: Specialises in serving borrowers with adverse credit histories.
Typical Customer Profile: Individuals with past financial difficulties seeking a second chance.
Application Process: Focus on personalised service with both online and personal communication.
Like other non bank lenders on this list, Pepper Money provides loans to those who struggle to meet traditional lending criteria. Established in 2000, their products include home loans and personal loans.
Located in Auckland, they have a 4.6 star rating on Google, however, it’s important to note the 5 star reviews are over 12 months old. The most recent reviews appear to correlate with the sale of HSBC mortgages to Pepper Money, which was finalised in December 2023.
Welcome Limited
- Products: Equity release loans, bridging, investment and refinancing loans.
- Unique Selling Proposition: Fast, flexible and fair lending solutions from $250,000 up to $2.5 million.
- Typical Customer Profile: Short terms loans up to 2 years for renovations, investments or short term refinancing.
- Application Process: Welcome Limited only accepts applications via NZ mortgage brokers.
Welcome position themselves as “surprisingly human” and claim to offer fair lending solutions. They are a new business – registered with the Reserve Bank of New Zealand on 6 January 2025. At the time of writing, the RBNZ rates their business as B- and stable.
Non Bank Lenders for Property Investors, Developers and Bridging Finance
First Mortgage Trust
Products: Property finance, commercial loans.
Unique Selling Proposition: Specialises in secure property lending with competitive rates.
Typical Customer Profile: Property investors and commercial developers.
Application Process: Detailed proposal and security evaluation required.
First Mortgage Trust is a non bank lender for investment loans. If you’re looking to head into property development, need a construction loan, bridging finance or releasing equity, First Mortgage Trust is a great choice.
You need equity or capital if considering First Mortgage Trust. Their loan to value ratios are:
Residential Property Investing & Equity Release Loans:
Land & Buildings: up to 75% LVR
Sections: up to 70% LVR
Leasehold land: up to 50% LVR
Commercial, Industrial, Development, or Construction Loans:
Land & Buildings: up to 66.7% LVR
Vacant land: up to 50% LVR
Starting interest rates range from 6.65% to 7.35% per annum, are subject to change, and were last reviewed in March 2026.
Xceda
Products: Exceda offers property investment loans and bridging loans.
Unique Selling Proposition: Long term loans up to 30 years.
Typical Customer Profile: Investors looking to buy and hold, land bank, or undertake larger scale renovations that will take more than 2-3 years to pay back.
Application Process: 3 x payslips and 3 months of bank statements, including if you are self employed. Apply via a mortgage broker or direct to Xceda.
Long-term property investment loans are available from 7.10%pa (figures effective from 23 February 2026) and are available as an interest-only option for the first 5 years, or principal and interest from the start. Xceda is one of the few non-bank lenders offering long-term loans up to 30 years. You’ll need a 30% deposit.
Loans for vacant land are up to $1m with interest rates starting from 9.95%pa and a 60% LVR.
General Finance
Products: Residential and commercial short-term loans (up to 3 years).
Unique Selling Proposition: Quick decisions and flexible terms for short-term financial needs.
Typical Customer Profile: Borrowers looking for shorter term loans for renovations and home improvements. Business owners needing working capital or to pay down tax arrears, progressive drawdown construction loans for individuals, builders and developers.
Application Process: Fast application process, often requires real estate as collateral.
General Finance offers short and medium-term residential and commercial loans. They cater to investors, developers, and homeowners.
Offering home loans for up to 3 years, General Finance is an option for those looking for home improvement loans with fast approval times (sometimes 1-2 days at most).
They can help those with an impaired credit history, or if you are borrowing as a trust, partnership or company.
Their loan to value ratios are low, lending up to 69% of the value of the property for a first mortgage. Their bridging loan options are helpful if you have found another home to buy but haven’t sold your existing home yet.
Construction or development loans are also available for new builds, subdivisions or multi unit developments.
Southern Cross Partners
Products: Short term lending of up to 2 years.
Unique Selling Proposition: Focuses on tailored property finance solutions.
Typical Customer Profile: Investors and builders needing flexible, short-term options.
Application Process: In-depth evaluation of the property and borrower financials.
Southern Cross Finance offers loans for investment properties, development and construction, and land buying. They are short term solutions, with loan terms up to 2 years.
They are another non bank lender offering bridging finance, and can also help business owners release equity within their property to fund business purchases. Interest rates start around 6.99% for residential loans, 8.99% for construction lending.
A 100% NZ owned business, their team is based across the North Island as well as Wellington and Canterbury.
Non Bank Lenders With Closed Products
Resimac
Resimac stopped accepting new home loan customers as of 1 July 2024. It continues to serve existing customers only.
Bluestone stopped accepting new home loan applications for New Zealand customers on 30 August 2024. Existing loans have continued in line with loan agreements and are managed by Challenger Mortgage Management. Bluestone continues to operate in Australia.
Overview of Non Bank Mortgage Lending in New Zealand
In New Zealand, we’re seeing a growing segment of the financial market dedicated to non bank mortgage lending. This alternative to traditional banking offers diverse home loan solutions and is playing an increasingly significant role in our housing market.
What Are Non Bank Mortgage Lenders?
Non bank lenders are financial institutions that offer mortgage lending without holding a traditional banking license. They’re a viable alternative to big banks for those who may not meet their strict lending criteria or who seek more tailored or flexible financing options.
The Role of Non Bank Lenders in the NZ Housing Market
Non bank mortgage lenders in New Zealand are important players in the housing market, especially for buyers who are otherwise unable to secure financing through a bank. While they hold a smaller portion of the market compared to banks, their impact is significant.
They contribute to a more inclusive lending environment, often having more lenient criteria or offering products designed for specific financial situations.
Advantage of Non Bank Lenders
When we compare non bank mortgage lenders with traditional banks, there are a few key differences to keep in mind.
Non bank mortgage lenders often offer more personalised application reviews and may provide loans when traditional banks say no, due to strict lending criteria.
On the flip side, banks usually offer lower interest rates and are perceived as more familiar institutions for many borrowers.
However, with both options now being well-regulated, deciding between the two comes down to specific needs and circumstances.
Often, if a traditional bank says no, we move to a non-bank lender for approval, with a view to refinancing within 2-3 years, when the bank can see your repayment history and may offer more favourable terms.
Flexible Loan Terms and Conditions
Non bank mortgage lenders often pride themselves on flexibility. They may offer flexible loan terms, helpful if your needs don’t fit the standard banking framework, from longer loan periods to more accommodating payment schedules.
Solutions for Borrowers with Unique Circumstances
Borrowers with irregular income, or a poor credit score, can often find more options through non bank lending. These lenders take a more holistic approach to assessing your financial picture, rather than relying solely on credit history.
What to Keep in Mind Before You Borrow
If you’re thinking about working with a non bank mortgage lender in NZ, there are a few important things to weigh up. These include how much you can borrow relative to the property’s value, the costs involved across the life of the loan, and the regulatory environment that protects you as a borrower.
Loan to Value Ratios (LVR) and Deposits
The LVR represents the percentage of a property’s value that you can borrow. Some non bank mortgage lenders offer more flexibility if you’re unable to meet the strict LVR requirements set by traditional banks. Be aware, though, that this could mean higher interest rates, as the lender is taking on more risk.
Interest Rates and the Total Cost of Borrowing
Interest rates are one of the biggest things to weigh up when securing a home loan. Non bank mortgage lenders will almost always charge a higher interest rate than banks.
It’s important to look beyond the headline rate and calculate the total cost of borrowing over the life of the mortgage. Higher interest rates over time can significantly increase the total amount you repay.
Regulatory Protections
In NZ, the Credit Contracts and Consumer Finance Act (CCCFA) regulates how loans are offered, including those from non bank lenders. Non bank mortgage lenders are still required to operate within this framework, meaning they must assess your loan application carefully to ensure you can afford the repayments.
Working with a non bank lender can open doors to home ownership that might otherwise be closed. However, it’s worth carefully assessing the LVR, total cost of borrowing, and regulatory protections before moving forward.
Specialist Services Offered by Non Bank Lenders
Non bank lenders often provide more flexible solutions tailored to unique circumstances. Our approach is to guide you through the options available and help you secure financing that fits your situation.
Non Bank Lenders for Self Employed Borrowers
For self employed borrowers, traditional loan applications can be a hurdle due to fluctuating income and non standard proof of earnings. Non bank mortgage lenders understand this and offer loan terms designed to accommodate business owners and contractors. By assessing your income more creatively, they can provide a fairer evaluation of your borrowing capacity.
Bad Credit and Non Standard Loan Solutions
A poor credit score or past credit issues don’t have to disqualify you from owning a home. Non standard loan solutions can help work around your financial history.
By reviewing each case individually, we offer specialist advice and options like low deposit alternatives that take your unique circumstances into account. We’ll help you choose the right non bank mortgage lender so you’re not locked into something you may regret later on.
Bridging Loans and Second Mortgages
Sometimes the timing between buying a new home and selling your current one doesn’t line up. Bridging finance can provide the funds to cover this gap.
If you’re looking for funding for major expenses or debt consolidation, a second mortgage may also be worth exploring. This allows you to leverage your property’s equity to meet those financial needs.
Assessing Your Eligibility and Pre Approval
First, we need to determine whether non bank lending is a good fit for you. This starts with a pre approval stage, which typically involves:
- A review of your finances: We’ll look at your bank statements and assess your income, expenses, and debts to understand your financial position.
- Loan suitability: Based on this review, we’ll work out which loan terms might suit you best, whether that’s a short term solution or something longer term.
- Tailored advice: Our mortgage brokers will provide recommendations based on your needs.
Documentation and Requirements
Once you’ve received pre approval, we’ll help you gather the necessary paperwork. Non bank lenders generally require the same type of information as traditional banks, such as:
- Proof of income: Payslips, or tax returns if you’re self employed.
- Financial statements: Up to date bank statements to verify your financial behaviour. If you’re still in the planning stage, start thinking now about your spending habits and regular outgoings.
- Property details: If you’re purchasing a property, details of the asset are essential. If you’re buying an investment property, the non bank lender will likely want to see the current lease agreement, or if it is not tenanted, a recent rental appraisal.
With access to many of the non bank mortgage lenders listed above, we’ll compare options across lenders to find the best fit.
Do You Think a Non Bank Mortgage is Right for You?
At OneStop Financial Solutions, we understand the importance of finding a lending solution that aligns with your circumstances.
By working with non bank mortgage lenders, you stand to benefit from flexibility that isn’t always available through traditional banks. While the share of non bank lending in New Zealand’s mortgage market may be small, it represents a significant sum and an important option for borrowers seeking alternatives.
Talk to our experienced mortgage brokers today.
