When it comes to securing finance for a home or investment property, not everyone fits neatly into a bank’s criteria. That’s where alternative lending comes in — offering flexible solutions for people whose situations might not meet traditional lending rules. But how do you know if alternative lending could be right for you?
Here’s a simple guide to help you figure it out.
What is Alternative Lending?
Alternative lending isn’t about taking risky loans or paying huge interest rates. Instead, it’s about providing options for people who might not meet the “standard” requirements of major banks. This could include:
- Self-employed borrowers
- People with past credit issues
- Investors with complex structures
- Those with unusual property types or small deposits
Alternative lenders assess each situation individually, often moving faster and with more flexibility than traditional banks.
Who Might Benefit from Alternative Lending?
You could be a candidate if any of the following sound familiar:
- You’re self-employed or your income is irregular.
- You’ve had a credit hiccup in the past. (Read more about credit ratings here.)
- You have multiple or non-traditional income sources.
- You’re looking at a unique property (rural, mixed-use, or unusual types).
- You need quick approval for an auction, settlement, or bridging loan.
- You don’t have a standard deposit.
- Your investment or lending structure is complex.
- You want more flexibility than a bank can offer.
✅ Tip: If you tick two or more of these, alternative lending could be an option worth exploring.
Why People Choose Alternative Lending
- Speed: Quick approvals compared to traditional banks.
- Flexibility: Tailored solutions for irregular income, credit issues, or unusual properties.
- Options: Some borrowers use alternative lending temporarily, then refinance to a traditional bank later.
Alternative lending gives you options, not compromises — helping you move forward even if the “standard” path isn’t working.
Alternative Lending Case Studies
Self-Employed Buyer
Jane runs her own marketing consultancy and struggled to get a traditional bank loan because her income varies month to month. Through an alternative lender, she secured a home loan quickly, with terms suited to her situation, and later refinanced to a lower-rate bank loan.
Investor with Complex Portfolio
Mark wanted to purchase a small commercial property while holding multiple investment properties. Banks flagged his portfolio as too complex, but an alternative lender approved the loan, allowing him to expand his investments efficiently.
These examples show how alternative lending can bridge the gap when traditional banks say no.
Detailed Comparison: Alternative Lending vs Bank Loans
| Feature | Bank Loans | Alternative Lending |
|---|---|---|
| Approval Speed | Often weeks | Can be days |
| Flexibility | Low | High |
| Credit History | Strict | More lenient |
| Income Verification | Standard PAYG | Accepts self-employed & irregular income |
| Property Types | Standard | Unusual/rural/mixed-use |
| Deposit Requirements | Standard 20%+ | Can be lower (depending on lender) |
Next Steps: See if You Qualify
Want to know if alternative lending could work for your situation? We’ve created a free, easy checklist to help you see if you’re a candidate.
✅ Key Takeaways
- Alternative lending is for people who don’t fit the standard bank profile.
- You could benefit if your income, credit history, property, or timeline doesn’t fit traditional rules.
- A broker can help you explore options safely, without paying more than you need to.
Ready to get in touch to discuss your options? Contact one of the best mortgage brokers Perth has to offer today. For more information, you can also visit our alternative lending info page.
Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions.
