A word from Bluestone Home Loans
Bluestone Home Loans helps brokers place deals that traditional lenders won’t.
We help those with unique financial circumstances from being self-employed or an SMSF investor to those with ATO debts and historical credit blips.
Whether it’s lining up finance for a self-employed buyer or setting up an investor with a sharper strategy, Bluestone Home Loans helps brokers stay ahead of the game, with flexible lending options, faster turnaround times, and the support to turn ‘maybe’ into a ‘yes’.
Spring has traditionally been the time when home buyers emerge from hibernation to seize the fresh shoots of opportunity they’ve eyed during the cooler months. While this year promises to be no different, the question is whether the seasonal surge in activity fades like early blossoms or bursts into fruition. So far this year, there have been three rate cuts made by the Reserve Bank of Australia (RBA) in this rate-easing cycle, with more expected to come.
Theoretically, this should improve borrowing capacity for prospective borrowers and incentivise more home buyers to get off the sidelines and into the property market. The Australia research director for Cotality, Tim Lawless, says it’s important to remember that rates have come down from a historically high base.
“A reduction in borrowing costs may encourage more would-be purchasers to enter the market, boosting transaction activity,” he says. “However, first home buyers still face significant deposit hurdles due to high (and rising) housing prices and recent cost of living pressures that have depleted savings and continue to weigh on expenses for many households.”
Indeed, a lack of affordable housing supply has continued to see house prices drive higher. The Home Value Index from Cotality showed that national dwelling values rose by 0.6 per cent in July, the sixth consecutive month of growth. By July, the median house price was $844,197 – up 4 per cent on July 2024 figures – with every capital city having recorded a rise in dwelling values through the month.
Moreover, national listings are around 20 per cent lower than the previous five-year average. Construction bottlenecks are adding to the supply issues. Lagging capacity has turned the national cabinet’s 2023 pledge to build 1.2 million new homes over five years from ambitious to almost unachievable, while threatening to blunt the impact of affordability schemes, such as the First Home Guarantee. The imbalance between available supply and demonstrated demand has supported auction clearance rates, which have been tracking slightly above the decade average since mid-May. Given the falling rate environment and the lack of supply, forecasts for house price growth this year have been quickly revised up, with most expecting house prices to rise by between 5 and 6 per cent this calendar year. As such, borrowers who want to enter the property market this spring need to have their finances in order.
Tony MacRae, chief commercial officer at specialist lender Bluestone Home Loans, says market dynamics make qualities such as speed, flexibility, and support non-negotiable. “Deals are getting more complex, client expectations are higher, and timeframes are tighter,” he says. “Brokers want a lender who can support and provide solutions for real-world scenarios. They also want fast, clear answers so they can act with confidence.”
Fear of missing out
So, what kind of borrowers have been showing up at open houses? James Candrick, branch principal and broker at Yellow Brick Road – Balmain & Macquarie Park, says he’s observed interest across a range of profiles. “I think after the first rate cuts that we had earlier this year, there was definitely a bit of a spike in people coming back to us to say, ‘Look, we feel more confident now,’” Candrick says.
“They’re worried about missing out because as rates make it easier to afford a certain property, it also means, on the flip side, the price is going to come up as well.
“So, borrowers are trying to get in before the prices go up and trying to take advantage of the better affordability of our rates.”
MacRae also says momentum is on the rise across segments. “For alt doc, demand remains strong as self-employed borrowers and small business owners seek fast, flexible and competitive solutions … With many of these customers underserved by traditional lenders, we’re continuing to see brokers lean on our common-sense credit approach to get deals done,” he says.
“For self-employed borrowers, stable property prices and clearer economic signals are giving them the confidence to re-enter the market or refinance.
“At the same time, investors are responding to strong rental yields and tight vacancy rates, with many looking to act before competition intensifies over spring. “Finding the perfect mix of flexibility and competitiveness is still front and centre, borrowers don’t want to be boxed in by rigid policies, and brokers are seeking out lenders who can offer real solutions.” He also noted renewed interest from experienced investors diversifying their portfolios through SMSF lending.
Ahead of the competition
For Candrick, making the most of the spring property season means a proactive approach, particularly for clients with non-conventional incomes.
“We really should be trying to get these clients pre-approved,” he says.
“I’m sure every broker is mentioning that to their clients – that’s a bit of a no-brainer. What’s really important, particularly for self-employed borrowers, is for brokers to realise not all pre-approvals are made equal.
“Some lenders really assess the pre-approval, while others use algorithms. “For a self-employed borrower, there may be some complexity if the length of trading time on the business is tricky, or they’ve got some anomalies where the profit was more than 20 per cent higher a year ago.”
Candrick notes that self-employed borrowers often present unique complexities, and relying on a lender that bases pre-approvals on algorithms can introduce additional risk. “When the rubber hits the road, and they call you to say they’ve found a property, you as a broker spring into action to convert that pre-approval really quickly,” he says.
“If you happen to hit one of those hurdles, it can really throw a spanner in the works.”
MacRae says Bluestone Home Loans has refined its processes to help brokers and clients move quickly. “We’ve streamlined our processes to deliver faster decisions and a smoother path from submission to settlement,” he says.
“That includes conditional approvals in as little as one business day, quicker document reviews, and more transparency at every stage.”
For brokers, it means less time chasing updates. For clients, it means securing their property or refinancing without unnecessary delays.
“We’re also continuing to evolve our product range to give brokers greater flexibility and opportunities, whether it’s accommodating complex income types, offering cash-out options, or supporting investor strategies,” he says.
“The goal is simple: help brokers say yes to more clients, more confidently, this spring. What sets Bluestone apart is our willingness to workshop scenarios, provide hands-on support, and move quickly without cutting corners.
“We’re listening closely and continuing to evolve with brokers, not just for them.” In this way, the specialist lender aims to navigate complexity and streamline approvals, helping brokers close deals faster amid competition.
“In a market where every deal is different, our strength lies in flexibility, fast turnaround times, and hands-on support,” MacRae adds. “Whether it’s alt doc, investor, or SMSF, we take the time to understand the deal and find a way forward – not a reason to say no.”
