A Market Moving in Two Different Directions
The lending world is changing quickly, and 2025 is shaping up to be a year where the gap between major banks and specialist lenders becomes even more obvious.
While the big banks are tightening up and investing heavily in their direct, in-branch channels, non-bank lenders are moving in a very different direction. They’re offering flexible solutions aimed at borrowers who don’t quite fit the criteria of the major institutions.
All of this is creating a very real shift in how different types of borrowers are being supported.
A Rare No-LMI Pathway for Borrowers
One of the standout changes is coming from UBank. They’ve launched a 90% LVR home loan that doesn’t require Lenders Mortgage Insurance, which is a rare combination these days.
With just a 10% deposit and no LMI premium, this product gives a meaningful advantage to investors—who don’t usually qualify for government low-deposit schemes—and to first home buyers in metro markets whose price points sit above Home Guarantee Scheme limits.
It’s a clever move, and one that opens doors for people who may have felt stuck on the sidelines.
New Alternatives for Complex Borrowers
On the specialist side, Bluestone has stepped in right where Macquarie stepped out.
After Macquarie withdrew from all new trust and company lending at the end of October, Bluestone responded with two new lending options designed for borrowers with more complex setups.
Their residential construction loan is alt-doc friendly and goes up to $3 million at 80% LVR.
Their commercial investment loan — also up to $3 million at 80% LVR — covers warehouses, office spaces and retail properties, including SMSF structures.
For anyone using trusts, companies or SMSFs, these new products fill a gap that would have otherwise made lending more difficult after Macquarie’s withdrawal.
A Growing Shift Toward Direct Lending
Meanwhile, the major banks are making it clear that their direct channels are becoming a top priority.
CBA’s latest update shows that only 32% of new loans are coming through brokers, while 68% now come from their own in-branch network.
ANZ reported a strong broker share at 68%, but at the same time announced its “ANZ 2030” strategy, which involves hiring 50% more in-branch lenders to grow its direct presence.
These moves have raised concerns across the industry.
The MFAA has highlighted reports of branch-only pricing and cases where applications declined in the broker channel were later approved directly. That sort of inconsistency is worrying because it suggests uneven treatment depending on the channel the borrower uses.
Small Policy Wins for the Self-Employed
A few policy changes are also worth mentioning.
Westpac and ANZ have made life slightly easier for self-employed borrowers by allowing one year of financials instead of two.
It’s a small shift, but it reduces paperwork and speeds things up.
Borrowing Power Still Under Pressure
On the other hand, borrowing power remains tight because the RBA has kept the cash rate on hold while APRA continues to enforce the 3% serviceability buffer.
Even without rate rises, that buffer makes it tough for many buyers to reach the borrowing levels they’re aiming for.
Risk and Compliance Driving Lending Decisions
After a major fraud case involving a former NAB staff member, lenders are clearly tightening their AML and risk controls.
This heightened focus is another factor pushing more complex borrowers toward specialist lenders, who continue to offer flexible pathways where the majors are becoming more cautious.
What This Means for Borrowers Today
When you put everything together, the direction of the market becomes clear:
• Major banks are focusing heavily on simple, straight-forward customers who walk through their branches.
• Non-banks and specialist lenders are becoming the main destination for borrowers with more complex needs — whether that’s investors, SMSFs, construction clients or people with non-traditional income streams.
In today’s environment, the best lender for you isn’t automatically one of the big four. It really depends on your structure, your goals and the kind of support you need.
