Lower rates available to new customers
As competition among lenders for homebuyers heats up in a tight market, non-bank lender Bluestone Home Loans has announced substantial cuts to its variable rates across key products.
Bluestone says the lower interest rates, with cuts ranging from 0.20% to 0.50% depending on the loan, will be open to new customers who apply between August 25 and October 31, 2023.
They are especially aimed at brokers with customers who are self-employed or have credit impairments.
The Sydney-based non-bank lender operates in both Australia and New Zealand and manages more than $11 billion in home loans. It has a team of more than 270 staff across Australia, New Zealand and the Philippines.
New variable interest rates
The discounted variable rates are as follows:
- Prime Full Doc: 6.59% for loans less than or equal to 75% LVR – a decrease of 0.35% to 0.50%
- Prime Alt Doc: 6.99% for loans less than or equal to 70% LVR – a decrease of 0.20%
- Specialist Full Doc: 8.19% for loans greater than 70% and up to 75% LVR – a decrease of 0.45%; and 9.49% for loans greater than 80% and up to 85% LVR – a decrease of 0.20%
Commenting on the decision to cut variable rates, Bluestone chief sales officer Tony MacRae (pictured above) said it was the non-bank’s priority to “continually look for opportunities when reviewing the rate card with the ultimate aim of helping more customers with their home loans”.
“We’re focused on helping the one in 10 Australians who are underserved by banks to realise their dream of homeownership,” MacRae said.
“These rate decreases will provide brokers with more options for their customers with out of the box needs, including those who are self-employed, with credit impairments, or have different forms of income.”
MacRae said if brokers were helping a non-standard customer, he strongly encouraged them to call Bluestone’s Scenario Hotline on 13 BLUE.
“In just 30 seconds, you’ll be speaking to an experienced underwriter who’ll talk through more complex loans and workshop scenarios with you. This not only saves you time but provides a high level of client service that helps you get more business.”
Recent leadership changes at Bluestone
It’s been a busy six months for Bluestone. Last week, it announced the appointment of highly experienced financial services leader Mark Jones as CEO. Jones was previously CEO of non-bank SocietyOne and also worked in senior roles at Westpac, Barclays Bank and Citi Bank.
MacRae was also appointed to the role of chief sales officer at Bluestone at the same time as Jones. MacRae also worked at SocietyOne as chief commercial officer and held senior positions as MyState Bank and Westpac.
Broker commissions increased
In May, Bluestone announced it was increasing the upfront commission paid to brokers for its Specialist, Specialist+, and SMSF loans.
The new commission rates for new applications of Specialist and Specialist+ loans were lifted from 0.65% to 0.8%, while upfront commissions for new applications of SMSF loans were increased from 0.65% to 0.7%
Other changes at Bluestone
After launching a new SMSF loan and expanding its broker-facing team by appointing two new BDMs in NSW and Western Australia last year, Bluestone also launched its Scenario Hotline for brokers in March and new look branding and website in May 2023.
