Non-bank specialists hit $1bn as complex loans surge

Sydney non-bank FINSTREET has settled $1 billion in loans as self-employed borrowers, SMSF investors and complex cases drive specialist lending demand.

How a $1 billion milestone reflects the non-bank lending shift

FINSTREET, a Sydney-based non-bank lender and mortgage manager, has surpassed $1 billion in cumulative loan settlements — a milestone that Australian Broker reports reflects both the firm's own growth and a broader structural shift in how Australians access credit.

FINSTREET co-founder and managing director Darren Liu said the result is "the result of both favourable market dynamics and years of consistent investment in our business." The dynamics he points to are telling. Higher interest rates have pushed mainstream lenders to tighten their credit criteria, while borrowers themselves are presenting with increasingly complex financial profiles. Together, those forces have created a widening gap that specialist lenders and non-banks are filling.

"Borrowers have not disappeared; rather, their circumstances are becoming more complex, and the market increasingly needs alternative sources of credit to complement traditional bank lending," Liu said.

The $1 billion figure spans FINSTREET's mortgage management and private credit businesses, covering loans delivered through its broker network and lending partners. The scale of demand is illustrated by a single data point: in December 2025, FINSTREET received roughly $20 million in refinance applications in one week. Liu says the market hasn't slowed since — it has evolved.

In July 2026, FINSTREET expanded its Easy Refi range to include low-doc refinancing for self-employed borrowers, as well as refinancing from eligible lenders that do not participate in Comprehensive Credit Reporting. "The strong uptake reinforces that there is still significant demand for the lending solution and highlights the importance of understanding niche segments of the market," Liu said.

What this means for self-employed and complex borrowers

If you are self-employed, a contractor, a business owner, or in any situation where your income does not arrive as a predictable PAYG salary, you likely already know that standard bank lending can be a challenge. APRA-regulated banks apply consistent income assessment frameworks across their entire loan book, which means unusual or variable income profiles — even strong ones — can result in lower assessed borrowing capacity than your actual financial position warrants.

Non-bank lenders and specialist lenders operate with more flexibility. They can assess income from tax returns, business financials, and BAS statements, and they are not bound by the same standardised income shading that restricts what authorised deposit-taking institutions can offer.

FINSTREET's Easy Refi expansion is a practical example of that flexibility. If you are currently on a loan with a lender that does not participate in Comprehensive Credit Reporting, your recent repayment history — including any improvements after past difficulties — may not be visible to mainstream lenders assessing a refinance application. FINSTREET's expanded product is designed to work in that scenario.

For self-employed borrowers considering refinancing, the key question is whether a specialist lender's product comes with a rate, fee, and conditions structure that makes the move worthwhile compared with staying put. Use the refinance savings calculator to model the numbers before you commit to a broker conversation.

Liu also flagged that 2026 budget and policy changes are reshaping lending conversations, particularly around SMSF structures and property investment. "Recent policy and budget changes are also creating new conversations around property investment, self managed super funds (SMSFs) and broader financing strategies," he said. "Rather than reducing activity, these changes are increasing the need for informed credit advice as borrowers navigate a more complex lending environment."

For investors trying to understand what SMSF lending restrictions and capital gains tax changes mean for their portfolio, specialist lenders with deep experience in these areas provide not just the finance but the product knowledge a broker needs to navigate the options. Browse investor home loan options to understand what the market looks like for property investment financing.

What to look for when choosing a specialist lender

The growth of non-bank and specialist lending is good news for borrowers who don't fit the mainstream template — but it means making more nuanced comparisons. A few things worth considering before you proceed.

**Income assessment approach:** Understand how the lender will assess your income. Different non-banks have different approaches to low-doc, alt-doc, and full-doc assessments. The right product depends on what documentation you can provide and how the lender's credit team will interpret it.

**Comparison rates:** Non-bank products can carry higher rates than mainstream lenders, reflecting the higher complexity and perceived risk of their loan book. Always compare the comparison rate — not just the headline rate — to understand the true cost including fees. Specialist lending is often the right answer for complex situations, but the price of flexibility needs to be part of your assessment.

**Breadth of the lender panel:** FINSTREET supports brokers across residential lending, commercial finance, SMSF lending, development finance, and private credit. Working with a broker who has access to a broad specialist panel means you're more likely to be matched with a product that precisely fits your situation, rather than being squeezed into the nearest available standard product.

**Processing and response times:** Liu highlighted that FINSTREET received $20 million in refinance applications in one week in December 2025 — which puts the emphasis on whether a specialist lender can handle volume without turnaround times blowing out. Ask your broker what typical processing times look like for the specific products you are considering, particularly if your purchase or settlement has a fixed deadline.

The specialist lending sector is growing because borrowers need it to grow. More Australians are self-employed, more are investing through complex structures, and more are presenting with circumstances that sit outside the box a major bank's credit system is built to assess. The availability of credible non-bank options means a decline from a mainstream lender is not the end of the road.

If your situation is complex and you want to understand what home loan options are available across the full market, speaking with a broker who works with specialist lenders is the most efficient first step.