Non-bank lender or bank: what's the difference?

Last updated 3 November 2026 · Reviewed by 360 MMS Compliance

What is a non-bank lender?

A non-bank lender provides loans but doesn't take deposits from the public to fund them. 360 MMS holds an Australian Credit Licence and works with wholesale institutional funders who provide the money for our loans. Our credit team assesses each application against clear lending criteria and credit policy before it goes to our funder for a decision. Every application is assessed on its circumstances and lending criteria, and not every application is approved.

Are non-bank lenders regulated?

Yes. Home loans to individuals are covered by the same responsible lending laws under the National Consumer Credit Protection Act, whether the lender is a bank or not. That means making reasonable inquiries about your needs and finances, verifying what you tell us, and not offering a loan that's unsuitable for you. Mortgage brokers also have a best interests duty: the loan they recommend has to be in your best interests. If something goes wrong, you can use our complaints process, set out on our Complaints page.

Who are non-bank loans designed for?

Some of our loans are designed for borrowers whose circumstances may not fit a bank's standard policy, including:

• self-employed borrowers, including those with out-of-date tax returns
• Pty Ltd companies and trusts
• expats and non-residents buying in Australia
• people with a past credit event, such as a default or a tax debt
• people with a short time in their current job or business.

Non-bank loans aren't only for complex situations. Some of our loans are for borrowers with a clean credit history, for buying, refinancing and building. Each application is assessed on its circumstances and lending criteria.

Do non-bank loans cost more?

It depends. The cost comes down to the product, your situation and the risk, not on whether the lender is a bank. Loans for a past credit event, or loans using alternative income evidence, usually cost more than prime loans at any lender. Your broker can compare the total cost of each option, including fees, and explain why a particular loan suits you.

Do I have to pay lenders mortgage insurance?

Not always. On some of our home loans, a risk fee applies instead of lenders mortgage insurance (LMI) when you borrow a higher share of the property's value. You pay one or the other, never both. Your broker can tell you the amount from our current rate sheet. Other loans have their own fees.

What features can I get?

Many of the features you'd expect from a bank loan are available on some of our loans, such as variable or fixed rates, an offset account, redraw on variable loans, a debit card and split loans, so you can fix part of the loan and keep part variable. Features vary by loan: for example, redraw isn't available on SMSF loans. Your broker can check which features come with the loan you're considering.

How do I apply, and who looks after my loan?

You can apply through an accredited mortgage broker, or talk to our team directly about your options. Brokers accredited with us have completed our broker compliance training. Your broker will ask about your goals, income, expenses and debts, gather your documents and lodge the application with us. After settlement, our Customer Hub team helps with repayments, variations, hardship requests and discharges, and online banking is available on some of our loans.

FAQs

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. All loans are subject to lending criteria, and fees and charges apply. Kuone Pty Ltd T/As 360 MMS (ABN 81 621 683 672), Australian Credit Licence 504193.