Who are some non-bank lenders in NZ?

There are around 20 to 30 second-tier lenders available in New Zealand that property investors can use. And the industry is growing.Some of the more commonly used second-tier lenders you might have heard of are:LibertyBluestoneSquirrel MoneyAvanti FinancePepper Money

What are non-bank lenders?

Banks and non-banks will lend you money to purchase a residential property. That could be for you to live in yourself or as an investment, but there are some key differences. Non-banks don't do credit cards, term deposits or other 'bank-type' products. They just do home loans. Because they’re smaller, non-banks come out with different mortgage structures and interest rates that fit different types of people. Their approach is also different. They take more of a risk-based approach. Whereas if you pose more risk, you get charged a higher interest rate.

Are non-bank lenders risky?

Second-tier lenders have an unfair reputation as being a bit "dodgy". Not only is this reputation untrue, but it can put up an unnecessary barrier for investors looking for a viable and professional alternative to the main banks. Let's set the record straight. Second-tier lenders are tightly regulated, professional and responsible lenders. Yes, banks will usually have more attractive rates and are ultimately cheaper. But you have to meet their tight lending criteria to reap the benefits.

Mortgages

6 min read13 Apr 2026

Top 5 non-bank lenders in New Zealand

Can’t get a mortgage from the bank? A non-bank lender might be able to help. Here's our top 5 non-bank lenders in NZ for 2026.

Author: Peter Norris

Mortgage broker for over 10 years, property investor and Managing Director at Opes Mortgages

Reviewed by: Ed McKnight

Resident Economist, with a GradDipEcon and over five years at Opes Partners, is a trusted contributor to NZ Property Investor, Informed Investor, Stuff, Business Desk, and OneRoof.

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If you can’t get a mortgage from the bank, a non-bank lender might be able to help.

Non-banks provide home loans to borrowers who don’t quite meet traditional bank criteria.

In the past some people saw them as “second-rate” but today many are regulated, established lenders run by experienced finance professionals.

In this article you’ll learn my top 5 picks as a mortgage adviser. You’ll learn who they tend to work for … and what they cost.

Just remember: non-bank interest rates and fees are risk-based. The stronger your application, the cheaper rate you’re likely to get.

#1 Avanti Finance

We’ll start with Avanti Finance, one of the largest non-bank lenders in New Zealand.

It won Best Non-Bank at the New Zealand Mortgage Awards three years in a row (2022–2024), so it has a good standing within the industry.

What makes Avanti stand out is the range of lending products it offers.

Its Near Prime home loan is designed for good borrowers who just fall shy of the main banks’ criteria.

Interest rates start from 6.35%, and you can borrow the money and pay it back over (up to) 30 years. Some borrowers can even get interest-only loans.

It also has a Specialist product for more complex situations, such as:

Self-employed borrowers (where your income is more up and down)
People who have just started a business (most banks require you to have been in business for 2 years+)
Asset-rich borrowers with lower taxable income

The Specialist base variable rate starts at 7.55%, although your actual rate depends on your risk profile.

Avanti also offers bridging finance, and they’ll consider borrowers with previous credit issues.

There’s a $775 establishment and a $9.85 monthly fee.

So, if you need flexibility and a lender that can handle most situations ... Avanti is often one of the first names brokers consider.

#2 Basecorp

Basecorp is one the best known non-bank lender for short-term lending.

They offer loans all the way from short-term (up to 1-year loans), right through to 30 years.

That makes it popular with property investors, especially those doing quick flips.

Banks don’t always love short-term deals. They’re built around long-term lending, so it can be hard for flippers to get a loan, buy a house, do it up, and sell it fast.

Basecorp fills that gap.

Short-term rates are currently listed between 7.50-9.50%, and longer-term housing loans between 6.55-8.55%. Sometimes you can also get an interest-only loan.

Basecorp positions itself as a “gap-filler” when banks get conservative, particularly for bridging and other niche lending.

Establishment fees range from $595 to $995, plus a $13 monthly admin fee.

Like other legitimate lenders, Basecorp has a formal complaints process. They are part of the Financial Services Complaints Ltd (FSCL) scheme.

If your deal doesn’t fit neatly into a bank box (especially short-term) Basecorp is often worth a look.

#3 Pepper Money

Pepper Money is known for its speed. Centrix, a credit bureau, says Pepper Money can sometimes approve loans within 24 to 48 hours.

That makes Pepper Money useful if you need a quick answer.

It’s also popular with self-employed borrowers thanks to its Alt Doc option. This means you might be able to get a loan with only six months’ worth of business finances.

That can be useful if you’ve just started a business, or if your business has recently had an increase in sales.

Some mortgage advisers also find Pepper’s lending criteria works for investors with multiple loans. This is because they assess your application on the actual interest rate you are paying ... not a servicing test rate.

Pepper Money was awarded an Excellence for Non-Bank Lender of the Year in 2025.

Fees include a $749 establishment fee and a $10 monthly admin fee.

If you’re self-employed or need flexibility around income verification, Pepper is often one to consider.

#4 Liberty Finance

Liberty is an Australian-owned non-bank which operates at the specialist end of the market.

If you’re prepared to pay a higher rate to get a deal approved, Liberty can be an option.

The Low Documentation home loans require less income verification than standard lending. Rates currently range from 10.14-14.45%, depending on the product and risk profile.

Liberty also offers a Prime Boost structure for people with less deposit.

This structure can help buyers get into a property sooner, but it comes at a higher cost.

Liberty tends to suit borrowers who don’t meet mainstream criteria and are willing to pay more for flexibility.

#5 Squirrel Money

Squirrel is best known as a mortgage adviser, and also features in our Top 10 Mortgage Brokers list, but it also provides lending through its own platform.

Its standout product is Launchpad, designed for first-home buyers who have a small deposit. In some cases buyers can purchase with as little as 5% deposit.

Launchpad uses a two-loan structure:

A main loan arranged with another lender (typically up to 80%)
A top-up of up to 15% from Squirrel at 9.95%, paid off over 5 years

Because that top-up portion is at a higher cost, borrowers need strong income and servicing ability.

Squirrel also funds house builds and small-scale developments.

The establishment fee for Launchpad and standard home loans is $950.

If you’ve got a good income but a small deposit, Squirrel is one of the more innovative options in the market.

Is a non-bank lender the right choice for you?

Non-banks and banks both lend money for buying residential property, but the difference is in how they assess risk and structure loans.

Non-banks:

Focus solely on lending
Take a more flexible, case-by-case approach
Price loans based on risk

That usually means higher interest rates and fees, but more flexibility.

Non-banks tend to work for	Non-banks aren't always the right fit for
Self-employed borrowers who haven’t been in business for long.	Borrowers who qualify comfortably with a main bank.
Investors with multiple properties.	People chasing the absolute lowest interest rate.
Borrowers with complex or irregular incomes.	Low-risk borrowers with a clean financial history.
Short-term or bridging finance.	Anyone uncomfortable paying higher fees.

So which non-bank should I use?

These 5 non-banks are just a sample of the options for home buyers out there.

There are many more, each offering different loan types to suit different situations.

Sometimes getting a more expensive loan is better than getting no loan at all.

The main takeaway here is that there may be genuine options available to you.

A “no” from the bank no longer means “game over”.

Basecorp – Short-term property flips

Squirrel – 5% deposit first-home buyers

Pepper – Alt-doc/self-employed servicing flexibility

Liberty – Low-doc/self-certified income

Avanti – Broadest overall product range

Peter Norris

Mortgage broker for over 10 years, property investor and Managing Director at Opes Mortgages

Peter Norris, a certified mortgage adviser with 10+ years of experience, serves as the Managing Director at Opes Mortgages. Having facilitated over $1.2 billion in lending for 2000+ clients, Peter is a respected authority in property financing. He's a frequent writer for Informed Investor Magazine and Property Investor Magazine, while also being recognized as BNZ Mortgage Adviser of the Year in 2018 and listed among NZ Adviser's top advisers in 2022, showcasing his expertise.

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Ok, now for the legal bit:

This article is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money.

We’ve made every effort to make sure the information is accurate. But we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.

You might like to use us or another financial adviser

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Top 5 non-bank lenders in New Zealand

#1 Avanti Finance

More from Opes:

#2 Basecorp

#3 Pepper Money

#4 Liberty Finance

#5 Squirrel Money

Is a non-bank lender the right choice for you?

So which non-bank should I use?

Second tier lenders vs bank – which one am I better off with in NZ?