Bluestone Home Loan Review: What You Need To Know

Bluestone is a specialist non-bank lender that offers flexible assessment options, although its fees and lending costs deserve careful attention.

This guide examines Bluestone’s home loan products, eligibility rules, alt-doc mortgages, fees, features and alternatives. You’ll also learn how its lending approach may help you move towards a mainstream loan later, provided your finances and credit history improve.

Bluestone Home Loan Key Takeaways

Category	Summary
Best suited to	Self-employed borrowers, applicants with credit impairment and people needing flexible income verification.
Main advantage	Bluestone assesses borrowers who may not fit traditional bank lending criteria.
Loan options	Owner-occupier, investment and specialist lending options, subject to eligibility.
Income verification	Alternative documents may include BAS, business bank statements and an accountant’s letter.
Maximum LVR	Eligible residential products advertise lending up to 90% LVR, subject to assessment.
Fees	Establishment, legal, settlement, account-keeping and possible risk fees can apply.
Key limitation	Specialist lending can cost more than comparable mainstream bank lending.
Government schemes	Do not assume Bluestone participates in government deposit guarantee schemes or accepts first-home owner grants.
Application process	You must apply through an accredited mortgage broker.
Overall verdict	Worth considering when standard lenders cannot accommodate your circumstances, but compare the full cost first.

Overview and Verdict

Bluestone is an Australian specialist lender operating outside the traditional banking system. It focuses on borrowers whose financial circumstances may require a more flexible assessment.

Unlike a major bank, Bluestone does not offer everyday transaction accounts or credit cards. Instead, it concentrates on residential and other property lending.

Its lending approach can help if you run a business, have recently changed employment or experienced previous financial difficulties. However, flexibility does not guarantee approval.

Bluestone assesses your income, expenses, credit history, deposit and property. Your circumstances determine the available product, borrowing limit and applicable fees.

Verdict: Bluestone deserves consideration when conventional lenders cannot accommodate your application. However, borrowers with strong credit and straightforward income should compare mainstream lenders before accepting specialist pricing.

What Home Loans Does Bluestone Offer?

Bluestone offers lending solutions for different property purposes and borrower profiles. Product availability depends on your application, credit assessment and the lender’s current criteria.

Loan category	Main purpose	Important consideration
Owner-occupier loans	Buying or refinancing your principal residence.	Your income verification method and credit profile affect eligibility.
Investment loans	Purchasing or refinancing eligible investment properties.	Rental income, property type and investment purpose affect assessment.
Specialist loans	Accommodating certain credit-impaired borrowers.	Higher costs or stricter lending limits may apply.
Alternative-documentation loans	Assessing eligible borrowers without relying exclusively on standard tax documents.	You must provide acceptable alternative evidence of income.
Construction and other specialist lending	Supporting eligible building, commercial or SMSF property transactions.	These products have separate criteria and may not suit ordinary residential purchases.

Bluestone’s website outlines residential, investment, construction, expat, commercial and SMSF lending options. Each product has separate eligibility requirements.

For most home buyers, the key distinction is between traditional income verification and flexible verification. The latter can be particularly relevant to business owners.

Bluestone Home Loan Interest Rates

Bluestone does not price every borrower identically. Its assessment considers factors such as credit history, income verification, loan-to-value ratio (LVR) and loan purpose.

The lender publishes indicative pricing, but this guide deliberately excludes actual interest rates. These figures can change and may not reflect your individual offer.

Instead, ask your broker to explain the following:

Your applicable interest rate: Confirm the rate offered for your specific product, deposit and credit profile.
The comparison rate: Review the comparison rate alongside the advertised rate because it incorporates the interest rate and certain fees.
Risk-based pricing: Ask whether your credit history or documentation method changes your pricing.
Rate loadings: Confirm whether interest-only repayments, loan size or other product features increase the applicable rate.
Variable-rate changes: Establish how future rate increases would affect your repayments and household budget.

A lower advertised rate does not necessarily mean a cheaper loan overall. Your deposit, fees and repayment structure can change the total cost considerably.

For a fair assessment, compare written offers using the same loan amount, term, repayment type and purpose.

Bluestone Home Loan Fees and Charges

Fees deserve particular attention because specialist lending can involve costs beyond your regular repayments. Bluestone publishes a schedule of fees, although your final charges depend on the product and transaction.

The lender’s published fee schedule lists the following charges as a guide. Confirm the current amounts before applying.

Fee	Published amount or basis
Establishment fee	$599–$999
Loan settlement fee	$199
Legal fee	From $400
Company or trust assessment	$300
Valuation fee	By quote, with the first $400 covered under the published schedule
Risk fee	Up to 3% of the amount borrowed
Monthly account-keeping fee	$15
Loan variation fee	Up to $390 per request, plus third-party costs
Discharge fee	$500 per discharge, plus third-party costs

These amounts are drawn from Bluestone’s published fee information and may change. Your loan agreement determines which charges actually apply.

Understanding the Risk Fee

Bluestone does not charge lender’s mortgage insurance (LMI) on its advertised residential products. However, some products attract a risk fee.

This distinction matters when comparing a low-deposit loan with a bank’s offer.

LMI generally protects the lender against losses if a borrower defaults. A risk fee is a separate charge under Bluestone’s lending arrangements. Neither should be confused with the deposit you contribute towards the property.

For example, consider a hypothetical $800,000 property purchase with a $40,000 deposit. You would need to borrow $760,000 before applicable costs.

A 3% risk fee on that borrowing amount would equal $22,800 if the maximum fee applied to the full loan. This is an illustration, not a quote or a prediction of your fee.

Ask your broker whether a risk fee applies, how it is calculated and whether it can be added to your loan. Capitalising the fee increases your debt and may affect your maximum permitted LVR.

Also consider whether stamp duty, conveyancing, valuation and other purchase costs require additional savings.

Home Loan Features and Benefits

Bluestone offers features that may make its loans more practical for eligible borrowers. However, availability can vary by product.

Offset account: Eligible residential loans offer an offset sub-account, which can reduce the balance used to calculate interest. Confirm whether the account has any conditions or additional costs.
Redraw facility: Eligible borrowers can access certain extra repayments through redraw. Check withdrawal conditions and whether your specific loan includes this feature.
Interest-only repayments: Some products permit interest-only periods of up to five years. Your broker should explain the repayment increase when the interest-only period ends.
Flexible income verification: Alternative documents can help eligible self-employed applicants demonstrate their earnings. Acceptance depends on the lender’s assessment.
Debt consolidation: Eligible borrowers may be able to combine certain debts into their property loan. This can reduce regular repayments but may increase the total interest paid over time.
Equity access: Bluestone may consider eligible applications to release equity. The available amount depends on property value, affordability and lending limits.
Longer loan terms: Some products permit terms of up to 40 years. A longer term can reduce required repayments but usually increases total interest over the loan’s life.

Bluestone’s published policy excludes offset and redraw availability for certain SMSF and construction arrangements. Do not assume every feature applies to every product.

Bluestone Home Loan Eligibility Requirements

Bluestone considers more than your credit score. It also examines your income, employment history, expenses, liabilities and proposed property.

Its published general eligibility information identifies Australian or New Zealand citizens and permanent residents, subject to applicable residency rules. Applicants must generally be at least 18 years old.

Other important considerations include:

Employment history: The lender reviews your work history and the stability of your income. Employment gaps or changes may require explanations.
Repayment capacity: You must demonstrate that you can afford repayments after considering your existing financial commitments.
Deposit and equity: Your LVR affects eligibility, pricing and possible fees. The maximum advertised LVR is not a guarantee of approval.
Credit history: Bluestone considers certain past defaults, arrears and insolvency events under its applicable credit policies.
Property suitability: The lender assesses the property’s location, value and characteristics. Some properties face additional restrictions.
Loan purpose: Owner-occupied and investment applications may have different pricing and assessment rules.

Bluestone’s broker policy provides separate criteria for Prime, Near Prime, Specialist and Specialist Plus lending. The category that fits you depends on your circumstances.

Importantly, a previous rejection does not automatically disqualify you. Equally, Bluestone’s willingness to consider an application does not mean it will approve it.

Alt-Doc Mortgages: What Self-Employed Borrowers Need

Traditional lenders often rely heavily on tax returns and notices of assessment. This can create problems when business owners have fluctuating income or substantial legitimate business deductions.

Bluestone offers alt-doc mortgages for eligible borrowers who need alternative income verification. The lender identifies several possible documents.

Document	What it helps demonstrate	What to prepare
Business activity statements (BAS)	Recent business turnover and activity.	Prepare six months of BAS where accepted, with supporting calculations if required.
Business bank statements	Business income flowing through the account.	Provide six months of statements where accepted, with clear transaction descriptions.
Accountant’s letter	An accountant’s assessment of business income.	Ask your accountant to provide the details and format required by the lender.
Tax returns and notices of assessment	Declared income and taxation history.	Supply the required completed returns and supporting assessment notices.

The documents are not necessarily interchangeable in every case. Your broker should confirm which evidence applies to your chosen product.

How to Strengthen an Alt-Doc Application

First, reconcile your declared turnover with your bank deposits and BAS. Explain material differences, including GST and transfers between accounts.

Next, separate business and personal transactions where possible. Clear records help the lender understand your genuine cash flow.

Then prepare evidence of your ongoing business activity. Your ABN history, industry experience and current contracts may support the broader assessment.

Finally, disclose existing debts, tax liabilities and repayment commitments accurately. Alternative documentation changes how the lender verifies income, not its responsibility to assess affordability.

Bluestone’s published broker policy contains product-specific rules. Check the current requirements before relying on a particular document or minimum trading period.

Bluestone’s Pathway to Prime for Credit-Impaired Borrowers

A specialist loan can sometimes provide a temporary financing option while you rebuild your financial position. However, there is no automatic pathway from a specialist product to a prime loan.

The practical strategy involves improving your eligibility for mainstream lending over time.

Step One: Identify the Original Problem

Determine why a traditional bank rejected your application. The issue might involve a paid default, recent arrears, inconsistent income evidence or high existing commitments.

Different problems require different solutions. Paying down credit cards will not resolve missing business records, for example.

Step Two: Choose an Appropriate Specialist Product

Bluestone’s lending categories accommodate different levels of credit risk. The lender assesses factors such as the size and age of defaults, recent repayment conduct and the circumstances surrounding previous financial difficulties.

A borrower with an older paid default may receive different treatment from someone with recent mortgage arrears. Current policy and the complete application determine the outcome.

Step Three: Improve Your Financial Conduct

Maintain consistent repayments, reduce unnecessary debts and avoid taking on new commitments without a clear reason.

For self-employed borrowers, keep financial statements and tax records organised. Stable income evidence can strengthen a future application.

Step Four: Review Your Position Regularly

After your circumstances improve, ask a broker to reassess mainstream options. Compare the potential savings against discharge fees, refinancing costs and any new establishment charges.

The objective is not simply to obtain approval today. It is to secure appropriate finance now while preserving realistic options for cheaper lending later.

Do not assume refinancing will be available at a particular date. Your income, credit history, property value and lender policies may change.

How Much Can You Borrow With Bluestone?

Bluestone assesses borrowing capacity using your income, expenses, existing debts and security property. Its published product information also identifies maximum loan amounts and LVR limits, which vary across products and policy versions.

You should not treat a headline borrowing limit as your personal approval amount.

For example, imagine purchasing an $900,000 property with a $90,000 deposit. Your proposed loan would be $810,000 before purchase costs, representing a 90% LVR.

Even if a product permits that LVR, the lender must still assess affordability and property suitability. Any applicable risk fee could also affect the total borrowing requirement.

Your borrowing capacity may depend on:

Your verified income and how consistently you earn it.
Your household living expenses and existing debt repayments.
The lender’s assessment of your credit history.
The property’s valuation and acceptable LVR.
The loan term, repayment structure and applicable assessment criteria.

Ask for a written borrowing assessment before committing to a purchase. Allow for stamp duty, legal costs, insurance and an emergency cash reserve.

Which Government Schemes Does Bluestone Participate In?

Government support can reduce the upfront costs of buying a property. However, you must check whether your chosen lender and product meet each scheme’s requirements.

First Home Guarantee and Other Deposit Schemes

Bluestone should not be assumed to participate in the Australian Government’s Home Guarantee Scheme. Its standard lending flexibility does not automatically provide access to government guarantees.

Check Housing Australia’s current participating-lender list before applying. If you want to buy with a small deposit under a government scheme, confirm whether an approved participating lender can accommodate your income and credit history.

First-Home Owner Grants

Bluestone’s published purchasing FAQs state that it does not accept the first-home buyer grant. Therefore, you should confirm how this affects your funding arrangements before choosing Bluestone.

State and territory grants have separate eligibility rules. These can depend on residency, property value, whether the home is new, and whether you will occupy it.

Do not include a grant in your available deposit until you confirm eligibility with the relevant state revenue authority.

Pros and Cons of Bluestone Home Loans

Pros	Cons
Flexible credit assessment	Specialist pricing may exceed mainstream alternatives.
Alternative income verification	You must still provide acceptable evidence of income.
Options for certain credit-impaired borrowers	Approval depends on the severity and recency of credit problems.
Offset and redraw on eligible products	Some products exclude these features.
No LMI on advertised residential products	A risk fee may still apply.
Residential investment options	Investment lending has different costs and assessment rules.
Broker-assisted applications	You cannot apply directly through a branch.

Overall, Bluestone’s strength is flexibility rather than necessarily offering the lowest-cost finance. The value depends on whether its lending criteria solve a genuine problem for you.

Bluestone Customer Service and Reputation

Bluestone operates without a traditional branch network. Its home loans are available through accredited mortgage brokers, and customer support is provided through its servicing channels.

This arrangement suits borrowers who prefer broker assistance. However, it differs from banking with an institution that offers branches, transaction accounts and a broader range of everyday financial services.

Independent customer reviews show mixed experiences. Some reviewers praise application support and communication, while others report frustrations with service or loan administration.

Review scores can change, and individual experiences do not establish how your application will be handled. Consider recent feedback alongside the lender’s formal complaints process and published contact details.

Before proceeding, ask who will manage your application, how updates will be provided and where to raise concerns. Also establish how hardship requests and repayment changes are handled after settlement.

Is Bluestone Good for Different Borrowers?

First-Home Buyers

Bluestone may suit a first-home buyer who cannot meet a mainstream lender’s requirements. Its flexible assessment can help certain applicants with non-standard income or credit histories.

However, it may be less suitable if you need a government deposit guarantee or first-home owner grant. Check these restrictions before paying for valuations or committing to a property.

Casual Employees

Casual workers may qualify if they can demonstrate stable, acceptable income. Bluestone’s published broker policy includes casual employment within its income assessment framework.

Prepare recent payslips and any requested employment evidence. If your hours vary, explain the pattern and provide supporting records.

Self-Employed Borrowers

This is one of Bluestone’s key target markets. Its alternative-documentation options can help business owners whose tax returns do not reflect their current cash flow.

Nevertheless, you need credible evidence of income and sufficient repayment capacity. An accountant’s letter alone does not guarantee approval.

Property Investors

Bluestone offers residential investment lending and may consider eligible applications to refinance or release equity.

Investors should compare the loan’s total cost against expected rental income and ongoing property expenses. Also check how the lender assesses rental income, vacancies and other investment debts.

Refinancing Borrowers

Refinancing may be worth exploring if your current lender no longer suits your circumstances. Bluestone can consider eligible applications involving refinancing and certain debt-consolidation purposes.

However, a lower monthly repayment does not necessarily mean you save money. A longer term, added fees or capitalised debts can increase your total repayment cost.

Bluestone Home Loans Compared With Other Lenders

Bluestone is best compared with both mainstream banks and other specialist lenders. The right alternative depends on whether your main challenge is credit history, income verification or price.

Feature	Bluestone	Mainstream banks	Other specialist lenders
Self-employed income	Alternative documents may be accepted.	Often rely more heavily on standard income evidence.	Some offer comparable alternative-documentation options.
Past credit problems	Certain credit impairment may be considered.	Credit criteria can restrict eligibility.	Policies vary according to the lender and product.
Pricing	Depends on risk and product features.	May be more competitive for straightforward applications.	Compare individual quotes and fees.
LMI and risk fees	No LMI on advertised residential products; risk fees may apply.	LMI may apply at higher LVRs.	Fee structures differ by lender.
Government deposit schemes	Do not assume participation.	Some approved lenders participate.	Participation must be checked individually.
Application channel	Accredited broker.	Direct and broker channels may be available.	Many specialist products are broker-distributed.

Compare Bluestone with lenders such as Pepper Money, Liberty and Resimac where their current products fit your circumstances. Their criteria, fees and product availability are not identical.

Request comparable written quotes rather than choosing from brand names alone. Include the interest rate, comparison rate, upfront fees, ongoing charges, offset availability and exit costs.

Who Should Consider Bluestone Home Loans?

Bluestone may be worth considering if:

Your self-employed income is difficult to verify using standard tax documents.
You have a past credit issue that mainstream lenders may not accept.
You need a specialist assessment because your circumstances fall outside standard lending rules.
You want to investigate eligible equity-release or debt-consolidation options.

You should compare alternatives first if you have strong credit, stable employment and straightforward income. You may qualify for a lower-cost bank loan without paying specialist lending fees.

Similarly, borrowers who need government deposit support should confirm scheme eligibility before proceeding. Bluestone’s flexible credit policy does not replace government scheme requirements.

How to Apply for a Bluestone Home Loan

Bluestone accepts home loan applications through accredited brokers. Preparing your documents before applying can help identify problems early.

Discuss your circumstances with a broker. Explain your income, deposit, credit history and intended property purchase.
Select the appropriate product. Your broker can check whether traditional or alternative income verification is more suitable.
Gather supporting documents. These may include identification, payslips, BAS, business bank statements, tax returns and liability statements.
Review the proposed costs. Confirm the interest rate, risk fee, establishment costs, ongoing fees and relevant loan conditions.
Complete the credit assessment. Bluestone evaluates affordability, credit history and the proposed security property.
Review the loan offer. Read the contract, repayment conditions, fees and available features before signing.
Proceed to settlement. Your conveyancer or solicitor coordinates the property transaction and settlement requirements.

Approval times depend on the application, documentation and valuation process. Avoid making unconditional commitments based on an indicative assessment alone.

Final Verdict: Is Bluestone Worth Considering?

Bluestone is a specialist lending option for borrowers who need more flexibility than traditional banks provide. Its alternative income verification and willingness to assess certain credit problems can make home ownership or refinancing possible in circumstances that require a closer review.

However, flexibility comes with important trade-offs. Risk fees, establishment costs and potentially higher borrowing costs can affect the overall value of a loan.

The most important question is whether Bluestone solves a problem that a lower-cost lender cannot. If your finances and credit history meet mainstream criteria, compare bank offers first. If they do not, assess Bluestone alongside other specialist lenders.

For self-employed borrowers, the quality of your income evidence matters. For credit-impaired borrowers, recent repayment conduct and the circumstances behind previous problems can influence the outcome.

Ultimately, choose a loan based on affordability, total cost and suitable features. Treat specialist lending as a considered financing decision, not an automatic substitute for comparing your options.

Frequently Asked Questions About Bluestone Home Loans

Is Bluestone a Bank?

No. Bluestone is a non-bank lender specialising in property finance. It does not provide the same everyday banking services as a traditional bank.

Does Bluestone Offer Home Loans for Self-Employed Borrowers?

Yes. Eligible self-employed applicants can use alternative income documentation, including BAS, business bank statements or an accountant’s letter. The lender determines which documents it will accept.

Can I Get a Bluestone Home Loan With Bad Credit?

Possibly. Bluestone considers certain credit problems under its specialist lending policies. Approval depends on your complete credit history, income, liabilities and repayment capacity.

Does Bluestone Charge Lenders Mortgage Insurance?

Bluestone states that it does not charge LMI on its advertised residential products. However, some loans attract a separate risk fee, which can materially affect the upfront cost.

Does Bluestone Offer an Offset Account and Redraw?

Yes. Eligible residential loans offer offset and redraw features. Some SMSF and construction arrangements are excluded, so confirm the conditions for your specific product.

Can First-Home Buyers Apply for a Bluestone Home Loan?

Yes, eligible first-home buyers can apply. However, Bluestone’s published purchasing FAQs state that it does not accept the first-home buyer grant. Check government scheme requirements before proceeding.

Can I Refinance From Bluestone to a Mainstream Bank?

Yes, if another lender approves your application. Improved credit conduct, stronger income evidence and lower debts may help, but refinancing is never guaranteed.

How Do I Apply for a Bluestone Home Loan?

You must apply through an accredited mortgage broker. Your broker can assess your circumstances, identify suitable products and explain the documentation and costs involved.

Disclaimer

This article provides general information about Bluestone Home Loans and Australian property finance. It does not constitute personal financial, credit, legal or tax advice.

Lending criteria, fees, product features and eligibility requirements can change. Approval depends on the lender’s assessment of your circumstances and the relevant loan terms.

Consider obtaining independent advice before making financial decisions. Review the lender’s current documents and compare suitable alternatives before committing to a loan.

More Resources For Homebuyers

Sources Used In This Article

The following sources provide the lender’s current product information, eligibility rules, fees and relevant Australian consumer guidance.

Bluestone Home Loans – Rates and Fees — outlines published loan charges, indicative pricing and potential ongoing fees.
Bluestone Home Loans – Owner-Occupier Loans — explains residential lending features, alternative income verification and product limits.
Bluestone Home Loans – Investment Loans — describes investment lending, eligible features and refinancing options.
Housing Australia — provides information about government housing programs and participating lenders.
ASIC Moneysmart – Choosing a Home Loan — explains comparison rates, loan costs and features borrowers should evaluate.

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