Ep 398: Why non-bank lenders can significantly extend your investment capacity

Read Full Blog HereRegister HereThe lending landscape has changed dramatically over the past two decades, and the gap between traditional banks and non-bank lenders has never been wider. In this episode, Stuart breaks down the key differences between authorised deposit-taking institutions (ADIs) regulated by the Australian Prudential Regulation Authority (APRA) and non-bank lenders regulated primarily by the Australian Securities and Investments Commission (ASIC) under the NCCP framework.You’ll learn how banks fund loans using customer deposits protected by the Financial Claims Scheme, while non-banks typically rely on securitisation and bond markets. Stuart explains why non-banks aren’t subject to APRA’s macroprudential limits, including serviceability buffers and debt-to-income caps, and how this can translate into materially higher borrowing capacity.He also unpacks the important nuances around offset account structures with non-banks, potential risks in a lender failure scenario, and why funding costs can shift independently of the RBA cash rate.Most importantly, Stuart explores how using a non-bank lender strategically can accelerate wealth creation, particularly in property investing, where access to finance often matters more than marginal differences in interest rates.My new book is available for pre-order now: Pre-ordering the book will help me get it into bookstores. So please do me a favour - please consider pre-ordering now - links and pre-order bonus are available here: https://prosolution.com.au/book-preorder-bonus Do you have a question for the podcast? Email us at [email protected]. If you're interested in working with our team and me, discover how we can work together here: https://prosolution.com.au/family-office-servicesIf this episode resonated with you, please leave a rating on your favourite podcast platform. Subscribe to my weekly blog: https://prosolution.com.au/stay-connected IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.