Types of Home Loan Lenders in Australia

If you are looking to get a mortgage to buy a house, you’ll need to find a company to provide you with a home loan. There are many types of home loan lenders in Australia, so when it comes time to choose who to work with, you have many options besides the traditional banks. 

What is a home loan lender?

For most Aussies, you won’t have the entire cost of the property saved up or readily available when you buy a home. It is more common to aim for a 20% deposit and borrow the rest. A home loan lender is simply an institution that can lend you this money. 

The starting point for many people is a bank, often the one they have been with for most of their lives. However, there are plenty of other non-bank lenders now operating in Australia. 

» MORE: How to get a home loan

What is a non-bank lender? 

A non-bank lender is a business that offers credit but does not hold a banking licence from the Australian Prudential Regulation Authority (APRA) and cannot accept deposits from customers. This means they can’t offer products such as savings accounts or term deposits, but they can provide things like credit cards and home loans. 

Types of home loan lenders in Australia

Big Four Banks 

In Australia, the ‘Big Four’ refers to the largest banks:

• Commonwealth Bank of Australia (CBA), also known as ‘Commbank’
• Westpac Banking Corporation, known as ‘Westpac’
• National Australia Bank (NAB)
• Australia and New Zealand Banking Group (ANZ). 

Together, these banks account for an estimated 80% of outstanding residential mortgages.

You may opt for a mortgage from one of them for a variety of reasons, such as loyalty or familiarity if you have an existing credit card or savings account. You may also be attracted by a  competitive interest rate, customer service or a specific type of home loan, or particular features that you want, such as a redraw facility or offset account.

Other major banks 

Outside of the Big Four, there are numerous other big banks providing an array of mortgage products. These include: 

• AMP Bank
• Bank of Queensland (BOQ)
• BankSA
• Bankwest
• Bendigo & Adelaide Bank
• HSBC
• ING
• Macquarie Bank
• St.George Bank
• Suncorp
• Virgin Money.

Customer-owned banks

Customer-owned banks — also known as credit unions, mutual or building societies — are designed to provide banking services to members (customers) as opposed to making profits, which are theoretically put back into services that benefit members. According to Roy Morgan research, customer-owned banks have more satisfied customers — 91.6% compared with 77.4% for major banks.

Customer owned banks and credit unions currently have 735 branches (812 face-to-face points) in Australia. That’s more than all other banks except for Commbank and Westpac. 

Australian customer-owned banks include: 

• Australian Mutual Bank
• Auswide Bank
• Bank Australia
• Beyond Bank
• Border Bank
• Community First Bank
• Great Southern Bank
• Heritage and People’s Choice
• Hume Bank
• Newcastle Permanent
• Unity Bank.

Professionals working in certain industries — defence, energy, education, emergency services, police and government — can also find specialised customer-owned bank options. These include: 

• Australian Military Bank
• Defence Bank
• Firefighters Mutual Bank
• P&N Bank
• Police Credit Union
• Teachers Mutual Bank

Digital banks, online lenders and fintech companies

Digital banks, sometimes also referred to as online banks or neobanks, and online lenders provide another option for borrowers. By skipping the costs associated with physical branches, online banks should be able to pass these savings onto customers in the form of lower interest rates and fees. Furthermore, many online lenders aim for faster approval times than bigger banks. 

On the flip side, you may not be able to visit a branch when making enquiries, or even chat to a lending specialist over the phone, depending on who you bank with. 

Digital banks and online lenders include: 

• Easy Street
• Qantas Money
• ubank
• Unloan
• Up bank.

Fintech companies

The term ‘fintech’ refers to the use of technology to deliver financial products to customers. Much like digital banks, fintech companies use technology to digitise the home loan process, making it faster and more convenient for customers. Some fintechs work with other lenders, while others offer mortgage broker services and their own loan products. 

Examples include: 

• Athena
• Tiimely Home (formerly Tic:Toc)
• WLTH
• Yard
• Yellow Brick Road.

Types of non-bank lenders 

There are over 600 non-bank lenders operating in Australia, according to the Australian Competition and Consumer Commission (ACCC). Some may operate digitally, or completely online to reduce overhead costs. They include: 

• Aussie
• Firstmac
• homeloans.com.au
• Homestar Finance
• HomeStart
• La Trobe Financial
• loans.com.au
• Pepper Money
• RedZed
• Well Money.

Leading home loan lenders in Australia

The largest mortgage providers in Australia, based on the value of gross lending in 2023.[1]

Current value of owner-occupier loans book

Based on statistics from January 2024.[2]

Other home loan companies and professionals to know 

During your home loan search, you may also come across the following people who can assist you in the process. 

• Mortgage brokers. A mortgage broker is an intermediary between lenders and buyers. They help buyers find a home loan and interest rate that fits their unique financial situation. So, finding a good mortgage broker to work with can make a big difference.
• Financial advisers. A financial adviser can help you with financial decisions on everything from budgeting, taxation, investing, and superannuation to mortgages. 
• Solicitors. A solicitor assists in the conveyancing process. 
• Conveyancers. A conveyancer is a property professional who offers advice, information and assistance with transferring property ownership. 
• Home inspectors. A home inspector is a licensed professional who performs a detailed analysis of a property and its surroundings to identify any defects or structural issues. Their report helps inform the decision of lenders and buyers. 
• Property valuers. A property valuer is often employed by a bank or lender to determine the market value between a willing buyer and seller. A property valuer is important in the home buying process as a lender wants to determine a property’s true value, rather than the sale price it gets on the property market. 
• Government agencies. In Australia, federal and state governments offer schemes and grants for first home buyers.

List of home loan lenders in Australia

Here are some of the many banks and non-banks that provide home loans in Australia. 

About the Author

Aaron Bell

Aaron Bell is a journalist originally from Brisbane, Australia. With a passion for promoting financial wellness, Aaron prides himself on breaking down complex topics into clear, concise content. He has…

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