A word from Bluestone Home Loans
In a market that demands flexibility, specialist lending has stepped into the spotlight.
At Bluestone, we’ve long believed that every borrower deserves a considered solution, not a one-size-fits-all assessment. That’s why brokers trust us to navigate complex scenarios with clarity and confidence.
Our dedicated team of BDMs works with you to workshop solutions and keep your clients moving toward their goals.
Because growing your business starts with helping them.
One of the most valuable skills a broker can bring to the table is the ability to navigate the cases that fall outside standard credit policy.
As borrower profiles evolve and financial situations become increasingly complex, specialist lending has become an essential tool for these situations where traditional lenders fall short.
For Aaron Taylor, head of non-standard lending at non-bank specialist lender Bluestone Home Loans, the profile of the typical specialist lending borrower has changed in recent years.
He says today’s borrowers look very different, and many scenarios that were once considered non-standard have quickly become the norm.
“The way Australians earn income is changing as more people are self-employed, have multiple income streams or structure their finances through company and trust structures,” he says.
“Their situations are strong, but they don’t always fit neatly into a one-size-fits-all credit model. Specialist lending steps in by looking at the full picture. It’s less about ticking boxes and more about understanding their cash flow, intent to find a way forward.
“That’s why we’re seeing more prime and near-prime borrowers choosing non-bank lenders – not as a last resort but as a confident first choice when their scenario calls for a more flexible approach.”
While alt-doc solutions for self-employed borrowers remain a key opportunity, other borrower profiles are also emerging, according to Taylor.
“We’re also seeing strong growth in expats and globally mobile clients, especially those earning in foreign currencies or structuring income offshore,” he says.
“There’s also the complex prime segment of high-income earners who fall outside automated models due to multiple income streams, bonuses or investment structures.
These clients are often overlooked by mainstream lenders but represent high-quality opportunities.”
As borrower profiles have continued to evolve, so too have their needs. Taylor says today’s market extends well beyond credit-impaired scenarios and alt-doc lending.
“We’re seeing more PAYG borrowers with minor credit blips linked to cost pressures, investors with complex portfolios and business owners whose latest financials don’t reflect their current trading position,” he says.
“The biggest change is their mindset. Brokers are no longer treating specialist lending as niche; it’s becoming part of their everyday toolkit.”
Finding solutions in complexity
Specialist lenders such as Bluestone Home Loans have become an integral part of the business written by Brisbane-based broker Caleb Cook, who co-founded brokerage Loop Loans alongside his partner and fellow broker, Evelyn.
Cook, who specialises in debt consolidation, says borrowers who use specialist lending are typically solution-focused rather than rate-focused, prioritising access to finance that meets their needs over chasing the sharpest rate.
“It’s not always even people with bad credit issues. It can be just the general cost of living being so expensive at the moment,” he says. “We’re seeing a lot of people, even with better conduct, asking whether they can consolidate a car loan or credit card just to get a bit of financial relief.”
He recalls one client who invested their life savings into swim schools on the Queensland–NSW border during COVID-19, only to be locked out when border closures prevented them from operating the businesses.
After relocating to regional NSW, floods destroyed their new facilities and equipment, creating further financial strain. With multiple debts and mounting repayment pressures, the borrower was struggling to stay afloat.
He was able to combine the client’s liabilities into a single loan with Bluestone, reducing monthly repayments by more than $4,500 and providing a financial reset.
“Now they’ve been able to stay on top of those repayments, and in six months’ time they’ll actually be able to refinance back to a low 6 per cent with a different lender,” he says.
“We just had to push. To get it done was the best feeling. ”
Turning complexity into opportunity
According to Taylor, success in the specialist lending market comes down to curiosity, persistence, and a willingness to advocate for clients.
He says the most successful brokers dig deeper into a borrower’s circumstances and work with lenders to determine whether there is a viable pathway forward, rather than immediately declining applications that appear to be too complex.
“They’re proactive in exploring solutions and instead of focusing on why a deal doesn’t fit, they ask how they can make it work. This is where collaboration with a lender is critical,” he says.
“Successful brokers are also confident. They invest time in understanding specialist lending and are more comfortable having those conversations with their clients, which in turn creates stronger, loyal client relationships and more opportunities. ”
A big part of the challenge is understanding what’s possible, and Taylor says building awareness on the breadth of solutions will also unlock opportunities. To support this, Bluestone provides a range of education and training resources designed to help brokers stay ahead as borrower needs and market conditions continue to evolve.
“Whether that’s through direct access to specialists like myself for specialist lending and Richard Chesworth in the SMSF space, or through ongoing education,” Taylor says.
“We also regularly host webinars with industry experts like Tim Lawless from Cotality, publish white papers and industry articles and host regular broker events to help bring these scenarios to life. ”
With support, brokers become more comfortable with the space.
“Beyond that, it’s about learning how to read a scenario differently. Looking beyond payslips and tax returns to understand cash flow and borrower intent is where confidence really builds. A big part of that confidence comes from the support around you,” he says.
“The brokers doing this well treat their lender as a partner by workshopping deals together and building capability over time.”
Meanwhile, Cook encourages brokers to focus on strong relationships with their BDMs.
“I think it’s really advocating for the client and just asking a lot of questions from the lenders that are available, rather than just sticking to the major banks,” he says.
From niche to mainstream
Looking ahead, Taylor says specialist lending will continue its shift into the mainstream as a growing number of borrowers seek solutions outside traditional lending criteria.
In response, Bluestone has broadened its product suite over the past 12 months to include areas such as expat lending, SMSF, commercial property, and construction finance.
Taylor also says that the lender has continued investing in faster, more consistent credit decisioning while maintaining a strong focus on the human element.
He says this includes a common-sense approach to credit assessment and a continued emphasis on a full-picture view of each application.
“It’s about giving brokers both the technical knowledge and the practical confidence to lean into more complex opportunities,” he says.
“Because ultimately, the more a broker understands this space, the more clients they can help and the more they can grow their business.”
Specialist lending case study
“A recent example involved a couple navigating redundancy. With one income lost, they had fallen into arrears and were managing five separate debts, putting pressure on their cash flow.
“Mainstream options weren‘t available, but by taking a more considered, common-sense approach we were able to assess the remaining applicant‘s income (including their overtime) and consolidate all debts into a single home loan.
“That reduced their monthly commitments by over $1,100 and gave them a much clearer, more manageable path forward.
“It‘s a good example of what specialist lending is really about. Not stretching risk but providing structure and stability when a situation doesn‘t fit all the standard boxes.”
