Non Bank lenders

[greedy saffa]

Does anyone have an idea of how non-bank lenders are regulated in Australia?

What is the legal position on your mortgage / property if the non-bank lender goes belly-up?

With the proliferation of non-bank lenders, I'm surprised that the security of your loan/investment is not addressed on any of their websites.

Any ideas?

Thanks
Saffa

 

[MissMuffitt]

I am with MyRate. I guess you would call them a "Non Bank Lender"
But they are backed by ING, one of the largest banks in the world.

I am sure that it is stated on their web site about who is backing them.

Anyway, we are very happy with them, they are a lot more helpful than HomePath ever was!

 

[Peter_Tersteeg]

Most non bank lenders source their funds from a reliable funder, such as a major bank or superannuation pool.

The risk of the non bank lender going under is low to medium, but the risk of the funder going under is extreamly low. In many cases the rates went up as the funder didn't want to work on the same margins as the lender. This has also been one of the major effects in Australia of the US credit crisis.

There is a valid risk, and there have been a few cases of non bank lenders going into receivership. In most cases the mortgages were assumed by the funders and the secured lending was not called in.

 

[greedy saffa]

Thanks Peter that's very helpful