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Bluestone Mortgage Review

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Home Loan Experts’ Review:
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Founded: 1999

Owned by: Private and institutional owners

Funded by: Wholesale money markets

LMI provider: Self-insured

Lender type: Non-Bank, Specialist lender

Bluestone Mortgages was a very successful non-conforming lender up until the onset of the GFC in 2007. It laid dormant until 2013 when it resumed lending in Australia.

As a specialist lender Bluestone Mortgages is a good choice for borrowers who don’t meet standard lending criteria. They’re not trying to compete on interest rates so you’ll probably pay a few percent more than you would with a bank.

How do Bluestone’s home loans compare?

They’re great at

But they’ve got some drawbacks…

  • They’ve got much higher rates and fees than a major bank
  • The smaller your deposit, the higher your interest rate
  • Other specialist lenders may offer you a better deal
  • Their risk fee, which is similar to LMI, can be quite expensive
  • They don’t do construction loans
  • They haven’t got much support from mortgage brokers so you may find it hard to apply for a loan

Our award-winning brokers get tough loans approved

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What home loans types do they have?

Bluestone Mortgages has four main products that have different rates and fees depending on the size of your deposit.

The Crystal Blue loan is designed for people with a clear credit history who can prove their income. This is typically chosen by people who don’t meet bank criteria due to their employment history or who are borrowing to fund their business.

The Clean Slate loan is designed to give people with a bad credit history a second chance. They can consider your application if you have defaults, judgement and even if you have been discharged from bankruptcy.

The Light Blue loan is a good option for self-employed borrowers who have had a business for over one year but who don’t yet have tax returns as evidence of their income. BAS or business bank statements can be used to verify your income instead.

The Business Easy loan is for borrowers with a newly established business that is less than a year old. You’ll need to provide bank statements to show that your business is trading but you won’t have to provide tax returns. This loan is a much higher risk to the lender as new businesses have an inconsistent income. So it has a higher rate than their other loans.

How does my credit impairment affect my rate?

Bluestone will categorise your credit history to be Clear, AAA, AA, A or BBB depending on the number of defaults, recently missed payments on your mortgage and if you have any history of bankruptcy or part 9 agreements.

A borrower that is categorised as Clear will get a better interest rate than someone categorised as BBB. In addition to this having a lower category may mean you need to provide a larger deposit.

Tips for applying with Bluestone Mortgage

Ask your mortgage broker to compare what they can offer to other specialist lenders such as Pepper or La Trobe as it always pays to shop around.

A good mortgage broker will also try to negotiate with the lender to get a better interest rate. While it’s very hit and miss with specialist lenders, it doesn’t hurt to ask!

Bluestone client story: Peter, NSW



Refinance, consolidation of debts, business finance, low doc business loan.


Restaurant-owner Peter owned a house worth $2 million in a high net worth suburb in Sydney.

His business had struggled during winter which caused him to overdraw several credit cards and miss some repayments on his home loan.

In order to increase his clientele, he planned to renovate the outdoor area of his restaurant to prevent the same problems happening next winter.


Using business bank statements, we were able to show Bluestone that Peter’s business had a stable income over the past several years. It was clear that last winter was a just a bad period.

Based on this, they were happy to refinance his home loan and release equity for him to fund his business. This simplified his situation from having multiple high interest debts to one simple repayment each month.

Although the interest rate as higher compared to other lenders, we created a plan with Peter so he could be in a position to qualify for a lower rate loan in 2 years time.

Compare Bluestone Mortgages to other lenders

Not sure which lender is right for you? Our Home Loan Experts can help!

Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.

  • deo

    How much can I borrow up to when refinancing tax debt?

  • Most banks will not approve a loan to refinance an outstanding tax bill from the Australian Taxation Office (ATO). However, we can help you borrow up to 85% of the value of your property (85% LVR) so please check out the tax debt home loan page to see if you can meet the qualification criteria:

  • Steven

    What if I have been self-employed on my own business for just over 6 months?

  • Hi Steven,

    If you’ve been self employed for less than one year, then there aren’t many options. Most banks won’t lend to you because you don’t yet have tax returns to prove your income and because new businesses have more financial uncertainty. Bluestone should be able to help, however, please discuss your situation and loan needs with one of our home loan specialists to find out what options are available.

  • Karl

    Can I just please have a list of some of the current business loan interest rates in the market?

  • Hey Karl,
    Note that interest rates on most business loans are negotiated depending on the size of the loan, equity position and overall strength of the application. We have published some of our lenders’ rates so please check them out here: