2025 Brokers on Non-Banks 

 

“They have redefined access to credit by creating innovative lending policies, and the big one for me is that they have built up broker loyalty,” Sale says. “Brokers now see non-bank lenders as reliable partners, not just for niche deals but for mainstream lending.”

 

The top three broker priorities remain BDM support, credit policy and turnaround times, showing that brokers prioritise relationships and execution. Remuneration fairness and transparency are rising in importance. Product range, communications and training and online platforms saw modest mid-tier gains.

 

Industry leaders confirm what more than 400 broker respondents report. While priorities are largely unchanged from last year, the score spread is smaller, and brokers now expect more from every aspect of their non-bank partnerships. 

 

AFG’s general manager of industry and partnerships, Mark Hewitt, says, “Broker satisfaction is most strongly influenced by direct communication with credit assessors, which streamlines decision-making, coupled with a clear understanding of deal fit, helping brokers match clients with the right lender more efficiently.”

 

Brokers point to added resources that have improved service times, as well as “significant improvements driven by increased investment in digital platforms, process automation and streamlined assessment workflows”. As one broker remarked, the result is “fast turnarounds that mean customers walk away smiling”.

 

PEXA’s latest Lender Mortgage Trends report shows the same pattern. Over half of new mortgage value now flows through brokers, and that share is climbing. Within this channel, non-ADI new-loan volumes rose 25.3% year-over-year in FY25, while the majors grew 3.9%, with non-banks leading non-majors for external refinances in NSW and Victoria. 

 

That report also notes faster, more digitised settlement processes among non-ADIs, which reflects broker feedback on quicker turnarounds and smoother workflows.

 

Across 10 criteria, brokers evaluated non-banks’ performance, crowning the top three in each category with gold, silver and bronze, plus honours for the overall winners. The 2025 rankings highlight that non-banks have stepped out of the specialist lane with brokers, though they still hold only a modest share of settlements. Brokers are judging them on the same broad set of factors as banks, and scores are higher across every dimension.

 

The MFAA’s Industry Intelligence Service 19th Edition corroborates that momentum. Non-bank settlements via brokers jumped 33.2% in April–September 2024 compared with the prior six months. After two quarters of gains, non-bank share eased 0.3 points to 5.9% in Q3 as international banks and white-label programs advanced, while total broker volume still increased 4.3% across the quarter.

 

“When I speak to our brokers on the main reasons they’re turning to non-banks, the resounding response is they are consistent, flexible and relationship-driven,” says Sale. “Also, they pick up the phone. If they cannot answer, you can bet they will call the broker back promptly.”

 

BDM support and credit policy surged to No. 1 and No. 2 in 2024 from seventh and last in 2023 and stayed there in 2025, with turnaround times placing third, confirming a service-led ranking in which responsiveness, flexible decision-making and speed outrank price and brand. 

 

Turnaround performance has become more reliable in 2025, with more brokers reporting consistent service, fewer reports of deterioration and, among those who saw movement, improvement leading the way.

 

Interest rates stayed at fourth in 2025, rising to 4.453 from 4.283 last year. Cost matters, but 70% say higher rates and fees are the main brake on sending more business to non-banks.

 

Brokers appreciate quality products backed by simplicity and support, and their votes for best non-bank product went to: 

• Bluestone Alt Doc: “Simple-to-use calculator, simple verification and easy documentation”
• Pepper Money Prime Alt Doc: “Fast turnaround with BDMs and credit focused on getting the deal done”
• Firstmac SMSF: “Competitive and relatively easy to use”

Commission structure moved up to eighth, overtaking product diversification, while brand recognition remained last, showing brokers prioritise competitive compensation and concrete support over brand identity.

 

 

 

WHY USE A NON-BANK?

Brokers push non-bank volumes to a record, with growth concentrated in 21–40% books, with reasons centred on document flexibility, wider assessment and speed

 

Last year delivered a rebound, with 67% of brokers saying they sent more loans to non-banks, approaching the 2021 peak of 69%. 

 

This year goes even further as 70% of brokers set a new high, turning 2023’s 50% low into a two-year swing of 20 points. The rise looks broader and more durable, supported by stronger service, flexible policy and quicker turnarounds, even as pricing still limits how much volume moves.

 

 

AFG’s Mark Hewitt says, “Brokers are increasingly turning to non-banks due to their willingness to consider borrowers who might fall outside of the major lenders’ standard appetite and require a bit more of a considered appraisal. This can include those with credit score challenges or variable income streams. This willingness to work with complexity makes non-banks a valuable partner for brokers and their customers.”

 

In the first half of 2025, SMEs reported 55% intent to use non-banks, up seven points year-over-year, while planned bank usage was 30%, according to ScotPac’s July 2025 SME Growth Index. The reasons matched broker feedback on speed, flexible policy and tailored options.

 

The <20% cohort (brokers putting the lowest proportion of loans through a non-bank) keeps easing, from 60% in 2023 to 50% in 2024 to 49% in 2025. Heavy users dipped in 2025 (7% put more than 60% of loans through non-banks) after touching 10% in 2024, but brokers expect that high-use group to rebound to 10% in 2026. 

 

Most of the growth is set to come from the middle. Non-bank users in the 21–40% band are projected to climb from 30% in 2025 actuals to 40% in 2026, pointing to broader use rather than a surge in majority non-bank books.

 

 

Non-banks have put in hard work to earn brokers’ trust, not just as an alternative but as a first-choice solution in many scenarios, notes outsource Financial’s Tanya Sale.

 

“The perception has shifted from ‘last resort’ to ‘distinctive value’. It also helps that non-banks have steadily lifted their profile over the past five years. It’s a testament to how far this sector has come. They play such an important part in our industry.”

 

Across the industry, there’s widespread acceptance that brokers are highlighting pricing and credit assessment as their primary challenges. Additionally, policy complexity, inconsistent interpretations and communication difficulties, especially with offshore assessors, which lead to processing delays, are prompting brokers to favour lenders that offer faster approvals.

 

This year’s survey shows brokers are choosing non-banks less because majors pull back – and more because the file needs a different pathway. In 2025, the top reasons for choosing them are documentation flexibility and a broader assessment of the borrower, with lack of standard docs at 25.6% and taking a wider view than the credit score at 24.6%, both up more than five points on 2024. 

 

Banks’ tightening credit policy slid to 16.3% from 23.4% last year, while regulatory factors ticked to 11.0% and personalised service held near 7.3%. The trend from constraint-driven to borrower-fit choice reflects rising mid-band usage and the SME intent data, and it explains why speed, policy flexibility and hands-on support keep pulling more business to non-banks.

 

Brokers reach for non-banks when the deal needs borrower-fit solutions. That means alt/low-doc paths, policies that take a broader view of credit history, and specialist segments such as SMSF. Their reasons included:

• “Diversified credit policy and appetite, along with greater scope to look outside the box”
• “Credit impaired, ATO debt consolidation”
• “Better borrowing, easy to deal with and less documentation”

Non-banks’ serviceability settings can deliver higher borrowing capacity, and the packaging is often simpler, with lighter documentation and faster progress to yes.

 

 

CONVERSION DECIDES THE WINNERS

Brokers reward lenders that make complex files easy. The standouts deliver hands-on BDM support, confident credit assessment and a toolkit that helps brokers grow

 

Brokers’ 2025 ratings of the benefits of using non-bank lenders point to rising year-over-year mainstream acceptance and reinforce the sector’s strong competitive position.

 

Client openness to considering non-bank products is consistent across the market. In 2025, 85% of clients were open to considering a non-bank, a pullback from the 91% peak in 2024 but still above 82% in 2023. 

 

The yes-to-no ratio is about 6:1 in 2025, down from 10:1 in 2024 but above 4.6:1 in 2023. The dip points to tougher pricing rather than waning interest, and price remains the biggest hurdle to converting openness into deals.

 

 

With most clients open to non-bank options, the battleground for winning their business is conversion. The leading non-bank lenders turn intent into settlements by making non-standard files easy to place with:

• clear alt-doc paths
• nuanced credit decisions
• fast, consistent turnarounds
• BDMs who stay close from scenario to settlement

These lenders back that with straightforward, competitive price and fee settings that are simple to explain, so brokers can close in one conversation. In short, they win on fit, speed and consistency, which helps overcome rate differentials and keeps deals moving.

 

Turning to performance, there’s clear daylight at the top of the podium. The overall gold medallist scored 4.43 out of 5 versus 3.57 for second, a 0.86-point gap, while silver and bronze were split by just 0.09.

 

The top three non-banks collectively amassed a substantial medal haul that surpassed last year’s accolades. Bluestone, Pepper Money and Liberty collected 10 golds, eight silvers and nine bronzes across the 10 categories.

 

 

Bluestone won nine of the 10 golds and took silver in brand recognition, retaining first place in BDM support. Liberty added five silvers and three bronzes, including silver for credit policy and a shared bronze for BDM support. Pepper Money claimed the remaining gold for brand recognition, plus two silvers and six bronzes, also sharing bronze for BDM support. 

 

In the mid-table results, Thinktank secured silver for interest rates, Firstmac took bronze in the same category, Resimac picked up bronze for product range, and La Trobe Financial, fourth overall, earned silver for BDM support.

 

OnDeck emerged among the top three non-bank lenders brokers would like added to their aggregator panel in 2025, followed by Better Choice Home Loans and Bluestone.

 

In 2025, 70.11% of brokers named higher rates and fees as the main reason they are not sending more business to non-banks, up from 67.69% in 2024. That figure is about seven times the next hurdle, lack of brand awareness at 9.68%, and it outweighs the rest of the barriers combined. 

 

Brokers weighed in with their thoughts on pricing:

• “Rates and fees are still too high for most customers”
• “The fees and rates are sometimes a killer, but they do provide options”
• “I think their rates for more standard lending scenarios are too far from standard lenders”
• “Non-bank lenders need to introduce products and rates that compete directly with the majors”
• “They have continued to put pressure on mainstream lenders with policies and competitive rates on a range of products”
• “A little movement of interest rates would make a big impact”

 

 

As AFG’s Mark Hewitt says, “Brokers and aggregators are placing greater emphasis on longevity in the market and a proven track record of supporting customers through interest rate fluctuations and economic cycles.”

 

Brand and branch concerns eased to 9.68% and 4.95%, respectively. Service complaints fell to 1.94%, while speed issues edged up to 4.09%. 

 

Access and administrative hurdles remain small but ticked up, with not-on-panel at 2.80% and poor commission at 1.08%. ‘Other’ slipped to 5.38%, pointing to broker pain points concentrating around price.

 

Other reasons brokers noted include:

• “Difficult to understand which product is available to the client. Ends up being unexpected”
• “Don’t have a lot of clients in this market sector”

The medals for commission structure matched the overall standings, with Bluestone first, Liberty second and Pepper Money third.

 

Reflecting on the factors that most strongly influence broker satisfaction with non-banks, outsource Financial’s Sale says the word ‘flexible’ comes up again and again.

 

“Outstanding non-bank lenders understand that not every borrower fits a one-size-fits-all mould,” she adds. “Whether it’s self-employed clients, those with non-standard income, or more complex scenarios, brokers appreciate lenders who assess deals on merit rather than [using] a rigid checklist.

 

“In these cases, the non-bank BDM works closely with the broker and the credit assessor when they believe a deal is there, to ensure a strong outcome for the broker’s client.”

 

 

 

TECHNOLOGY, TURNAROUND AND SERVICE

Most brokers enjoyed faster turnarounds and credited non-banks for their digital upgrades and responsive service, while calling for more BDMs and assessors

 

On speed, the best non-banks didn’t blink. In 2025, nine out of 10 brokers said turnaround times had either improved or stayed the same, rising to 92.1% from 87.5% last year. 

 

The share reporting deterioration fell to 7.9% from 12.5%. Among those who did see movement, improvement outweighed worsening by about six to one. Notably, significant improvement nudged up to 10%, while significant worsening stayed uncommon at 0.95%.

 

Consistent speed underpins broker confidence, which matters most when clients sit outside a major’s credit box.

 

“There’s a growing recognition of the important role non-banks play in supporting borrowers who don’t fit the traditional bank profile,” says AFG’s Hewitt. “Brokers now better understand the value and reliability non-banks bring to the lending ecosystem.” 

 

Brokers say non-banks have sped up with:

• faster pick-ups and decisions: many report files picked up within 24–48 hours and two to three days to conditional
• tech and workflow upgrades: brokers credit new digital platforms, automation, e-submission and online tracking portals for the speed-up
• people who move a file: direct lines to assessors and responsive BDMs are a big part of the improvement

The small group of brokers who believed times had worsened noted the increased complexity of some deals and operational inefficiencies as reasons, as well as higher volume leading to slower turnaround times, and “inappropriate” staffing levels.

 

Where speed broke down, brokers cited:

• capacity and resourcing: more files are landing with non-banks, and some teams are understaffed, so pick-up times blow out, and phones go unanswered
• poor communication and transparency: SLAs are unclear or undisclosed, status tracking is weak, and repeated emails or calls to BDMs go unanswered
• process deadlock: too much back-and-forth for basic documents, and assessors ask for information late in the process
• inconsistent performance: Some lenders lag, and delays worsen during busy periods 

  

Turnaround times gold medallist Bluestone is operating in a different gear, at 0.51 points ahead of silver winner Liberty, while Pepper Money finished a competitive third. 

 

Last year’s overall silver medallist, RedZed, received the lowest broker rating for its perceived slowness. It narrowly missed out on being one of the lenders brokers wished were added to their panel, placing fourth.

 

 

When it comes to wish lists, the ask has moved from tech and paperwork to people and capacity. More BDMs/credit assessors are now the top broker suggestion at 23.10% – up 5.29 points from 2024 – for how non-banks could improve their service. Results also showed:

• Simpler income verification fell to 16.19% (down 7.09pts), suggesting lodgement jams are easing and documentation paths are clearer
• Better technology dipped to 20.95% (down 2.80pts) but remains the No. 2 request, so workflow tools still matter
• Training needs rose to 13.33% (up 1.93pts) and communication to 12.86% (up 1.70pts), pointing to ongoing demand for clearer updates and more broker training

For the first time, one of the top three non-banks, Bluestone, scored well above four out of five from brokers for its online platform and services, showing that digital is now a frontline differentiator. Liberty won silver, while Pepper Money took the bronze.

 

 

 

 

WHAT YOU’RE SAYING

Do you think the non-banks have provided enough competition to the banks over the last year? Why/why not?