Bluestone is a specialist non-bank that has quietly become one of the first names brokers reach for when a borrower is self-employed, has a short business history, or has a credit event in their past. It’s built for exactly the applicants the big banks tend to overlook: the recently self-employed, the recently defaulted, the recently discharged. Below we break down Bluestone’s four-tier structure, what it’s good at, the cost of that flexibility, the documents you’ll need, and who it suits, plus how a broker helps you land in the right tier and graduate out of it.
Bluestone is a strong stepping-stone lender for the recently self-employed and borrowers rebuilding after a credit event. It’s not a rate-only shopper’s first choice. Its edge is genuine appetite for short trading histories and defaults, judgements or past bankruptcy, assessed on the real story rather than a computer-says-no policy. The trade-off is higher pricing on the deeper Specialist tiers, so the value is in getting approved now with a credible plan to refinance to a mainstream lender later, not in staying there indefinitely.
Note: this review is current as of 10 July 2026 and product/policy information is subject to change without notice. Bluestone lends through mortgage brokers only. There is no direct-to-customer channel and no published rate card we can quote here, as pricing is set per tier and per file. Any credit application is subject to the lender’s criteria and final approval; we confirm current terms directly with Bluestone before you apply.
Who is Bluestone?
Bluestone has operated in Australia since 2000: around 25 years of lending to self-employed people, contractors and borrowers with non-standard needs. Like other non-banks, it lends only through brokers (there’s no direct-to-customer channel) and funds its lending via the capital markets rather than customer deposits. Its reputation is as a flexible, solutions-focused specialist that accepts a broad range of income documentation and credit scenarios, and in recent industry reviews it has been a standout pick in the near-prime space. For a broker, Bluestone is one of the first calls when a client’s file doesn’t fit a bank’s box. Not because the client is a bad risk, but because their situation is different.
What is Bluestone good at?
- Short business histories. Bluestone is a leader at lending to the recently self-employed. Where banks want two years of tax returns, it can often work with less, provided the income story is credible.
- Credit events handled sensibly. Defaults, judgements and even past bankruptcies have a home across its tiers, priced to the risk rather than declined outright.
- Broad income documentation.A wide range of alt-doc evidence is accepted for the self-employed, which matters when a business owner’s financials don’t map neatly onto a bank’s standard checklist.
- Borrower-friendly recent changes. Bluestone has cut its broker clawback period to six months and eased the serviceability buffer on lower-LVR near-prime and prime loans. Both are useful signs for borrowers, since a shorter clawback gives brokers more room to place the right loan rather than the safest one.
- A clear tiered ladder. Borrowers can start where they fit and move to sharper pricing as their file improves. The structure itself is part of the offer.
Where does Bluestone fall short?
- Specialist rates are higher.That’s the cost of the flexibility, and a reason to treat a Specialist-tier loan as a bridge rather than a destination.
- Fees can apply on specialist tiers, so total cost (not just the rate) matters when you compare offers.
- Broker-only, no branches.You can’t walk in and apply directly; every application is lodged through an accredited broker.
- Not the cheapest for a clean borrowerwho fits a mainstream bank comfortably. If your file is straightforward, a Big Four or digital lender will usually beat Bluestone’s pricing.
Bluestone’s four tiers explained
Matching you to the right tier is where the value is. Go in one tier too cautious and you overpay; go in too optimistic and the application stalls:
- PrimeClean file
- Clear credit history
- Strong, stable employment
- Sharpest tier pricing
- Near PrimeMinor issues
- Small or older defaults/judgements
- Short-term or casual employment
- Reasonable, close-to-mainstream pricing
- SpecialistGenuine hardship
- Past financial difficulty
- Includes discharged bankruptcy
- Priced to risk
- Specialist PlusDeepest credit issues
- Larger defaults
- Recent bankruptcy
- Highest tier pricing
The real edge: short business history and credit events
Bluestone’s two standout strengths are closely related: recently self-employed borrowers, and borrowers rebuilding after a credit event. A bank will typically refuse a self-employed applicant with only a year of trading, or freeze the moment a default appears on a file, regardless of the story behind it. Bluestone is built to look past both, assessing the real strength of the income and the context of the credit event, then pricing to that risk rather than declining on sight. For a capable borrower who’s been knocked back purely because they’re “too new” or carry an old blemish, that appetite is the whole point. It sits alongside our self-employed home loans guide and the bad credit home loans hub as one of the more genuine specialist options on the panel.
Two files that look similar on paper can land in very different tiers depending on how the story is told. A default with a clear, documented hardship explanation reads very differently to an underwriter than the same default with no context at all. Telling it properly is often worth more than shopping for a slightly sharper rate.
Bluestone for a discharged bankruptcy or Part 9 debt agreement
Bluestone’s Specialist and Specialist Plus tiers are built to accommodate borrowers with a discharged bankruptcy or a completed Part 9 debt agreement on their file. That’s the kind of history that gets an automatic decline at most banks. It won’t erase the higher pricing that comes with the risk, but it does mean you’re not locked out of the market for years while you wait for the record to age off. See our detailed guides on home loans after discharged bankruptcy and Part 9 debt agreement home loans for the full policy landscape across the specialist panel.
Bluestone home loan rates
Bluestone’s pricing depends heavily on your tier and deposit. Near Prime is usually reasonable and close to mainstream, while the deeper Specialist tiers cost more to reflect the risk being carried. Because pricing is set per tier and per file rather than published on a fixed rate card, and because it moves as Bluestone’s own funding costs shift, we don’t quote specific rate figures here. They date quickly and won’t reflect your actual file.
The number that matters far more than any week-to-week rate move is which tier you land in. The gap between Near Prime and Specialist Plus dwarfs typical rate fluctuations. The better approach is a proper assessment of your file against all four tiers, plus the rest of the specialist panel, so you land in the cheapest tier you qualify for. Book a free assessment or call 1300 088 065and we’ll compare Bluestone against 30+ lenders for your situation.
What documents does Bluestone need for a home loan?
Bluestone’s alt-doc flexibility means the exact list varies by tier and income type, but a well-prepared file typically includes:
- Proof of identity:a photo ID such as an Australian driver’s licence or passport.
- Income evidence. For PAYG applicants, recent payslips and bank statements. For the self-employed, this can range from full tax returns and Notices of Assessment down to accountant-declared income or business bank statements, depending on trading history and tier.
- Credit event documentation.A clear written explanation of any default, judgement, Part 9 or bankruptcy (dates, cause and what’s changed since), plus discharge or clearance paperwork where relevant.
- Liabilities: statements for existing loans, credit cards and any buy-now-pay-later or HECS/HELP commitments.
- Property documentation: the signed contract of sale for a purchase, or a recent loan statement and rates notice for a refinance.
A credit-event explanation letter is one of the highest-leverage documents in a specialist-lending file. See our explanation letter guide for how to write one.
How much can I borrow from Bluestone?
Borrowing power with Bluestone is assessed tier by tier rather than off a single across-the-board formula. As a general shape:
- Prime and Near Prime borrowers are assessed on servicing similar to mainstream lenders, with deposit requirements broadly in line with the market.
- Specialist and Specialist Plus borrowers typically need a larger deposit or more equity to offset the higher risk, and the loan is priced and sized around what the file can support once the credit event is factored in.
- Self-employed applicants with a short trading history are assessed on the real strength of the income evidence provided. The flexibility is in the documentation accepted, not a lowering of the servicing bar.
Because tier placement changes the numbers so significantly, we don’t publish illustrative borrowing-power scenarios for Bluestone here. A genuine figure needs your actual file reviewed against the tier criteria. Try our borrowing power calculator for a general starting point, then speak to a broker for a tier-accurate number.
How long does a Bluestone home loan take to approve?
Timing depends heavily on how complete your file is when it’s lodged, especially the credit-event documentation and income evidence:
- Tier assessmentA broker reviews your income, credit file and any events against Bluestone’s four tiers to find the cheapest one you qualify for, before anything is lodged.
- Conditional approvalWith a complete file (including a clear credit-event explanation where relevant), conditional approval typically follows within a similar window to a mainstream near-prime lender.
- Formal approval & settlementFollows once the valuation and any outstanding documents are confirmed. Missing or vague credit-event paperwork is the most common cause of delay in this space.
The single biggest lever on speed is documentation quality: a well-explained credit event with supporting paperwork moves noticeably faster than a bare default entry with no context.
What else does Bluestone offer?
- Refinancing and debt consolidation for borrowers looking to stabilise and simplify multiple debts into one manageable repayment. See our refinancing with bad credit guide.
- Alt-doc lending for the self-employed: a flexible alternative to the traditional two-year tax return requirement. See low-doc loans for how this compares across the panel.
- Investment lendingacross its tiers for borrowers who don’t fit a mainstream investor policy.
- A structured path to graduate: the tier system itself is designed around moving borrowers to sharper pricing as their credit or trading history strengthens.
What are Bluestone customers saying?
Feedback on specialist non-bank lenders tends to centre less on branch experience (there isn’t one) and more on whether the lender actually looked at the borrower’s situation rather than applying a blanket policy. In our experience, borrowers who land with Bluestone after being declined elsewhere are typically relieved to be approved at all, and appreciate a tier structure that gives them a visible path to cheaper pricing later. The most common frustration, as with any specialist lender, is the higher cost on the deeper tiers. That’s exactly why we treat it as a stepping stone rather than a forever loan, and build a refinance plan into the conversation from day one.
Who Bluestone suits, and who it doesn’t
- Tends to suit
- Recently self-employed borrowers with a short trading history
- Borrowers rebuilding after a default, judgement or bankruptcy
- Contractors and casual workers outside standard bank policy
- Self-employed borrowers needing flexible income evidence
- Borrowers with a plan to graduate to prime later
- Tends not to suit
- Clean borrowers who fit a bank easily and want the lowest rate
- Anyone who needs branch access
- Borrowers who could access a cheaper mainstream path
A client story from our desk
How does Bluestone compare to other specialist lenders?
Bluestone sits in the specialist non-bank set alongside Resimac, Liberty and La Trobe Financial. Each has a different sweet spot:
| What matters | Bluestone | Other specialist non-banks | Mainstream banks |
|---|---|---|---|
| Short business history | A core strength, often works with under two years | Resimac/La Trobe similarly flexible; varies by lender | Almost always needs two full years |
| Defaults, judgements & bankruptcy | Handled across a clear four-tier ladder | Liberty and La Trobe also credit-event specialists | Usually an automatic decline |
| Pricing structure | Tier-based, reasonable at Near Prime, higher at Specialist | Broadly similar tiered approach | Single rate card, sharpest for clean files |
| Distribution | Broker-only | Broker-only across this set | Branch, phone and broker |
| Broker’s take | Strong pick for near-prime credit events and recent self-employment | Liberty leans SMSF/flexible policy; La Trobe self-employed-plus-commercial | Best once you’ve graduated back to a clean file |
Bluestone is particularly strong on short business histories and near-prime credit events; Liberty leans into SMSF and flexible policy, La Trobe into self-employed-plus-commercial, Resimac into clean prime pricing within the non-bank set. The right pick depends on the exact file. That’s exactly what a broker compares for you, rather than you having to guess.
Broker tips for applying with Bluestone
- Tell the credit story properly. Context around a default or hardship event changes the assessment. A documented explanation reads very differently to a bare entry.
- Match the tier honestlyso you’re priced correctly and not over-charged for risk you don’t actually carry.
- Plan the graduation. Build a timeline to refinance to a mainstream or prime lender as your file improves. A Specialist-tier loan works best as a bridge, not a destination.
- Weigh total cost, including any fees, against the value of getting approved now and starting to rebuild.
- Use the alt-doc flexibility properlyif you’re recently self-employed. Gather the strongest available evidence rather than assuming a short history rules you out.
Is a Bluestone home loan right for you?
Bluestone is one of the best options when you’re self-employed with a short trading history or rebuilding after a credit event, provided you’re matched to the right tier and have a credible plan to graduate to prime. It’s rarely the cheapest option for a clean, straightforward file, and that’s fine. That’s not who it’s built for. We’ll compare Bluestone against 30+ lenders, including the rest of the specialist panel, and tell you honestly whether it’s your best fit. Book a free assessment or call 1300 088 065 to get started.
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