Non-bank lenders help borrowers access equity

Australia's growing non-bank lending market has helped many home buyers to access the equity in their properties at low interest rates, according to RESI Mortgage Corporation. The growth in non-bank lenders has stimulated competition allowing home buyers to borrow against their homes, thus increasing both their individual wealth and the wealth of the general community, said RESI's joint MD Peter James.

Mr James said non-bank lenders offer a good alternative for people wishing to refinance. He suggested borrowers use the equity on their mortgages rather than credit cards in times of need as the rates on home loans are about a third of those of credit cards.