Australian housing market conditions remain under considerable strain as policymakers and industry grapple with persistent supply shortages and shifting borrower profiles. The government’s ambitious target to build 1.2 million new homes over five years—an annual pace never achieved in Australia’s history—highlights the urgency, yet recent performance suggests supply will continue to lag behind demand. This ongoing shortfall is driving not just higher prices but also a growing appetite for unconventional finance among borrowers, particularly as regulatory tightening and rising living costs constrain traditional lending.
Serial Company Collapses Leave Creditors Empty-Handed
Sydney businessman Anthony Falconer has been tied to at least nine company collapses, owing millions to small firms, workers, and the tax office. Despite this, he continues launching new ventures, raising fresh concerns over “phoenixing” and gaps in Australia’s corporate regulation system. He has now won $400k in NSW council contracts.
Housing Supply: Ambitions Meet Reality
Setting lofty completion goals, the National Housing Accord aims for 240,000 new homes each year from mid-2024, but the last record was 223,600 in a single year, meaning actual output remains well below target. Construction bottlenecks, labour shortages, and higher input costs have hampered progress, making it unrealistic to expect a swift balancing of supply and demand in the near term.
Borrower Pressures and New Market Segments
Australian households continue to face rental price pressure and tougher eligibility criteria for traditional loans. Regulatory changes, such as tighter rules on managing tax debts, further limit borrowing power and push many potential buyers toward less conventional paths. Increasingly, investors and owner-occupiers are pursuing properties that need significant renovation or don’t fit prime lending criteria, creating new market segments underserved by the major banks.
The Case for Private Non Code Funding
In this environment, private lending has become a critical pillar for finance specialists. Firms like Oasis Mortgage Group have stepped in to fill the void with real estate-backed solutions well suited for clients who don’t tick all the boxes for the big lenders. This includes low-doc construction and development funding, as well as flexible first and second mortgages, rural and commercial property finance, and land banking support. Crucially, Oasis’ approach enables faster project starts and turnaround times, something both brokers and borrowers value in a volatile market.
Why Partner with Private Lenders?
Working with private funders lets brokers respond more nimbly to complex or time-sensitive client scenarios. Oasis, for example, provides options when clients have incomplete documentation, non-prime properties, or urgent needs—scenarios increasingly common given current market frictions. Brokers who stay informed about economic trends and regulatory shifts can strategically connect clients with these alternative funding routes, improving retention and opening new revenue streams.
Key Takeaways for Brokers
- Private funding provides invaluable flexibility when traditional lenders stall, especially in challenging housing or regulatory climates.
- Diversifying into private non code solutions broadens a broker’s toolkit, enhancing both value to clients and business resilience.
- Successful firms will be those that educate clients on these evolving finance options and adjust rapidly as market and regulatory settings change.
The lending landscape is shifting quickly; for brokers and finance professionals, partnering with groups like Oasis and sharpening expertise in non bank, non code solutions is not just prudent but increasingly essential to staying competitive.
