Code and non-code loans in short-term mortgage lending

17/08/2023 | 3 min


In the world of short-term mortgage lending, the distinction between code and non-code loans plays a significant role in ensuring regulatory compliance and protecting borrowers., a prominent player in the lending industry, offers both code and non-code loans to borrowers. This article delves into the concept of code and non-code loans and examines the recent developments related to, drawing insights from the sources provided.

Understanding Code & Non-Code Loans

Code loans, also known as regulated loans, are subject to specific regulations set by the Australian Securities and Investments Commission (ASIC). The regulations aim to safeguard consumer interests and ensure responsible lending practices. Code loans typically have maximum loan amounts, interest rate caps, and other borrower protections defined by ASIC.

On the other hand, non-code loans, also referred to as unregulated loans, do not fall under the same regulatory framework as code loans. These loans are often characterised by higher interest rates and more flexible terms. Non-code loans may be suitable for borrowers who do not meet the eligibility criteria for code loans or require more customised lending solutions.

Funding’s Offering is a short-term mortgage lender that provides lending options to borrowers, including both code and non-code loans. The platform caters to individuals and businesses seeking financing for various purposes, such as property investments, renovations or bridging finance.

Code Loans at

Funding offers code loans in compliance with ASIC regulations, ensuring that borrowers are protected by the established consumer safeguards. These loans have strict criteria and borrower protections to prevent irresponsible lending practices and ensure transparency.

Non-Code Loans at

While provides code loans, it also offers non-code loans that are not subject to the same level of regulation. Non-code loans may be more flexible and cater to borrowers with unique circumstances or requirements that do not fit within the parameters of code loans. These loans may offer greater speed and convenience, but borrowers needs to exercise caution and thoroughly evaluate the terms and conditions.

Regulator Concerns & Recent Developments

Recently, regulatory concerns have arisen regarding lending practices in code vs non-code loans. In a media release by ASIC1, on their official website, it was announced that ASIC commenced court proceedings against Green Country and other over alleged unlicensed credit activity. This highlights the importance of ensuring that lending entities comply with licensing and regulatory requirements to protect borrowers and maintain a fair and transparent lending environment.

Additionally, a report by Banking Day2 highlights a court case where ASIC has been called upon to close a loophole concerning short-term loans. The court expressed concerns about the classification of these loans and whether they should fall under the code loan regulations.

Code and non-code loans are two distinct types of lending options in the realm of short-term mortgage lending. offers both code and non-code loans to cater to a diverse range of borrowers’ needs. While code loans adhere to regulatory requirements set by ASIC, non-code loans provide more flexibility. It is essential for borrowers to thoroughly understand the terms and conditions of any loan they consider and ensure that the lending institution they choose complies with all necessary licensing and regulatory requirements to ensure their protection.



Have more questions? Feel free to send them through to


More reading

Unlocking your Growth Potential with Funding

Empowering small developers for medium-density housing growth. Learn how makes it possible.

21/11/2023 - 3 min

Enhance your income with the Funding Income Trust

We understand the significance of keeping investors well-informed, here, we delve into the key features of the Funding Income Trust.

07/11/2023 - 6 min

How Funding empowers small-scale developers

Empowering small developers for medium-density housing growth. Learn how makes it possible.

28/09/2023 - 2 min
Back to top