The major lenders tend to be very conservative with their lending policies for 95% home loans. The main reason that we choose a non-bank lender for our 95% borrowers is because they can’t get approved by a bank.
There isn’t normally a large difference in the interest rates offered by banks as opposed to non-bank lenders.
In fact, a lender of ours will occasionally come out with a special offer that’s way ahead of the competition!