Bluestone

Refinancing a Bluestone Mortgage

Many people are refinancing their current Bluestone home loans to lower interest rates with other lenders. Bluestone is a specialist non-conforming lender so in most cases their loans are used to help fix up your situation, repair your credit history and then allow you to refinance to a cheaper home loan.

What are the exit fees / costs?

The DEF (Deferred Establishment Fee) is applied if your loan is repaid in full (discharged) within the first 3 years. It is calculated on the total loan amount and lump sum repayments not leading to a full discharge do not trigger DEF. The following shows the non-conforming Bluestone structure of the DEF:

    Fixed for life / Ready Access option:

  • Year 1 - 3%
  • Year 2 - 3%
  • Year 3 - 2%

    • Capped for life / Split Rate loans option:

  • Year 1 - 4%
  • Year 2 - 3%
  • Year 3 - 3%

    • Loan switching:

  • Switching between loans may be available subject to the underwriting criteria at the time.
  • If you switch from the “Fixed for Life” to the “Capped for Life” loan then you may be liable for a fixed rate break fee. Note that there are additional fees for this service

The above exit fees and costs are general figures and are subject to change. You should be aware of the costs involved before making any permanent decisions. Please enquire online if you would like more information regarding the exit costs of your mortgage with Bluestone.

Are Bluestone’s current interest rates competitive?

As a result of the sub-prime crisis, Bluestone experienced some funding issues. They suspended most new lending in 2007 and 2008 and raised the interest rates on all of their existing customer’s loans to help pay for their higher funding costs. As a result of this, Bluestone’s interest rates as not competitive.

About Bluestone Mortgages

Bluestone is a leading financial services business which was established in Australia in 2000. They were quite a successful lender and expanded rapidly, even being recognised by BRW as one of the fastest growing companies in Australia. Unfortunately their ability to fund loans was compromised by the sub-prime crisis and as a result of this, they suspended most new lending in 2007 and 2008.

Bluestone is owned by a number of leading institutional investors such as Bank of Scotland International and Crescent Capital Partners however the group operates two core divisions:

  • Bluestone Servicing
  • Bluestone Capital Management

Bluestone Servicing offers a range of portfolio management services to third parties such as Bond investors, the banks, Trustees and Administrators inlcuding:

  • Core servicing (customer and loan administration)
  • Special servicing (Collections and arrears management)
  • Standby or backup servicing
  • Trust management

Over the years Bluestone Servicing has developed a technology platform that allows multiple portfolios and asset classes to be managed on a single platform. This enables a flawless and accurate transfer of portfolios from third party systems.

Bluestone Capital Management was founded in 2008 and specialises in the acquisition and management of portfolios of loans, particularly underperforming and non-performing loans to consumers.

Portfolio sales can be particularly attractive to vendors looking to cap their exposure and either release capital, or reduce the risk that further capital will be needed to support under-performing loans.

On behalf of institutional and retail investment, Bluestone Capital Management draws on its extensive organisational experience in credit analysis, financing and management of receivable portfolios.

Apply to refinance your Bluestone Loan

Please enquire online and see whether refinancing your Bluestone mortgage is the best option to take. Speak to one of our specialist mortgage brokers who can find you the best lender that can offer a lower interest rate!