Not every borrower fits neatly into a bank's lending criteria. Maybe you've had a credit hiccup. Maybe you're self-employed with less than two years of accounts. Maybe the property you're buying is unusual. The main banks have rules, and sometimes those rules don't bend.
That's where non-bank lenders like Liberty Finance come in.
What is Liberty Finance?
Liberty is a non-bank lender that operates in New Zealand and Australia. They've been around for over 25 years and they're one of the more established non-bank options in the market.
Liberty sits between the main banks and the "last resort" lenders. They're not a payday lender. They're a proper mortgage lender with competitive products — they just have more flexibility than the banks when it comes to who they'll lend to and what they'll lend on.
When Liberty is the right fit
Liberty tends to be a good option in situations like these:
Credit issues. If you've got defaults, a past bankruptcy, or a patchy credit history, the main banks will often decline. Liberty is more comfortable looking past credit history if the current situation makes sense. They'll assess each case individually rather than running it through a rigid scorecard.
Self-employed with limited history. Most banks want two full years of financials. If you've been in business for less than that — or you've recently changed business structures — Liberty may be able to work with what you have.
Non-standard property. Some properties don't fit the bank's standard criteria. Unusual construction types, leasehold land, mixed-use buildings, or properties in locations the banks consider remote. Liberty has more appetite for these.
Bridging finance. If you need to buy before you sell and the timing doesn't work for a bank bridging product, Liberty can sometimes fill the gap.
Debt consolidation. If you've got a mix of debts and the banks won't consolidate them into a mortgage because of LVR or credit concerns, Liberty may have a solution.
How rates compare
Let's be upfront about this: Liberty's rates are higher than the main banks. That's the trade-off for the flexibility they offer. Where a bank might offer a rate in the 5-6% range, Liberty's rates are typically a couple of percentage points higher.
But rate isn't always the most important factor. If the main banks can't help at all, comparing Liberty's rate to a bank rate is comparing something to nothing. The real question is whether the lending gets you where you need to go — and whether there's a path back to a bank rate once your situation improves.
For many of our clients, Liberty is a stepping stone. They get the lending they need now, sort out whatever issue was holding them back (build up a credit history, get another year of financials, settle the property), and then refinance to a bank within 12 to 24 months.
How a broker accesses Liberty
You can't walk into a Liberty branch the way you'd walk into ANZ or BNZ. Liberty works exclusively through mortgage brokers. That's how they keep their costs down and their service consistent.
As a broker, we submit your application directly to Liberty's credit team. We know their policies, their appetite, and how to present an application that gets across the line. That matters with non-bank lenders — the way the story is told is often the difference between approval and decline.
We also know when Liberty is the right option and when another non-bank lender would serve you better. We work with a range of non-bank lenders, and we'll recommend the one that fits your situation — not just the one we happen to know best.
The path back to a bank
One of the things we always discuss with clients using Liberty is the exit strategy. If you're paying a higher rate now, the goal is usually to move to a bank as soon as you can.
That might mean:
- Building 12 months of clean repayment history to satisfy a bank's credit requirements
- Waiting until you have two full years of financials for your business
- Letting a credit issue age out of your record
- Building enough equity through repayments and property growth to meet a bank's LVR requirements
We keep in touch throughout this process. When the time is right to refinance, we'll handle it.
Talk to us
If you've been told no by a bank — or you suspect you might be — send us a message or call Matt on 021 997 106 or Gareth on 021 997 150. We'll look at your situation and tell you honestly what's possible. Sometimes it's Liberty. Sometimes it's another non-bank option. And sometimes the banks can actually help — they just need the application presented differently.
