businessOwned by: Privately-owned
monetization_onFunded by: La Trobe, Origin, Advantedge, Adelaide Bank, Pepper, ING and Resimac
securityLMI Provider: Genworth, QBE LMI and Self-Insured
account_balanceLender type: Non-Bank, Mortgage Manager
National Mortgage Company (NMC) is a progressive non-bank lender with an extensive range of funders. With one easy application, you can get assessed for a home loan from seven different funding sources and be able to choose from a range of home loan options from each.
What NMC does really well is their operations. When you apply for a home loan with AFM, Connective Home Loans or LJ Hooker Home Loans, your loan may actually be processed and approved by NMC in the Gold Coast.
The great operations and range of funders means that NMC can deliver great interest rates, a range of credit policies and quick approvals for their borrowers.
How do NMC’s home loans compare?
They’re great at
- Helping first home buyers with a low deposit
- Investors that need a diverse range of funding
- Fast loan approvals
- Customer service after your loan is advanced
- Financing the construction of a duplex
- Special solutions for borrowers with a bad credit history
- Low doc loans from several different funders
- Some of their funders don’t use credit scoring
- Working with mortgage brokers
But they’ve got some drawbacks…
- They’re not a major bank
- No branch access
- LMI can be expensive with some funders
- Home loans may seem confusing without expert advice
What home loans types do they have?
NMC has too many home loans to put all in one place. There’s seven funders and each have 5 – 10 different home loans. Let’s keep it simple.
NMC has a range of variable home loans including competitive rates for low risk borrowers and specialist loans for people with a bad credit history.
Some of the funders have good fixed rates, whereas others have fixed rates that aren’t competitive or they don’t offer them at all.
They have a range of niche products from funders like La Trobe, Pepper and Resimac who can consider low doc loans, small development loans and even some specialist commercial loans as well.
Basically there’s something for everyone but it can be a challenge to work out which loan is right for you.
Can I have two lenders fund one home loan?
Sometimes one of our customers will request one funder to do their variable rate and one to fund the fixed portion of their loan. It just doesn’t work that way.
Even though both funders are branded NMC you should treat them as two separate lenders. They see themselves as competitors and don’t work together to fund the same loan on the same property.
You can have different properties that are approved through different funders that NMC uses. It’s quite common to do this for property investors who may want their home funded with a different lender to their investment properties but want to deal with the one company.
When is a non-bank lender really a non-bank?
After the GFC, the major banks took a large share of the mortgage market. While the non-bank lenders have got back a lot of market share, many of them are part owned by a major bank or are funded by a major bank.
In NMC’s case, some of their funders are non-bank such as La Trobe and Pepper whereas others are bank-funded such as Advantedge (NAB) and Adelaide Bank.
National Mortgage Company client story: Leigh, NSW
- To buy a home with a past credit problem.
Purchase a home, after bankruptcy.
Leigh had taken out several credit cards and car loans when he was younger causing him to declare bankruptcy. He was only his early 20s but had learned his lesson and, after being discharged, he saved a large deposit.
Although his credit file no longer showed his past bankruptcy history, his bank had lost money from giving him a credit card in the past so they refused to lend to him again.
We spoke to several lenders and ended up securing a great interest rate through NMC. They were aware of his past bankruptcy history but they assessed him as a standard borrower because his credit file was now clean and he had a large deposit.
Leigh was not only able to buy his home but he also got a market-leading interest rate.
Compare NMC to other lenders
Not sure which lender is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.