The right tools for complex borrowers
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Mortgage brokers are dealing with more customers whose financial circumstances do not fit standard lending criteria, making specialist lenders like Bluestone an increasingly useful part of the broker toolkit
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A TRADEPERSON does not use the same tool for every job. A screwdriver is enough for one task, while a more specialised piece of equipment comes out when the job demands something different. The more complex tool is not necessarily harder to use. It is simply designed for a different problem.
Mortgage brokers face a similar choice when a borrower falls outside standard lending policy. The application may require more thought, a different way of assessing income or a lender with greater experience handling unusual circumstances. That does not necessarily make the customer a more difficult borrower.
“The biggest misconception brokers still have about placing a complex deal with a non-bank lender is that it’s going to be harder than it actually is,” says Aaron Taylor, head of sales strategy and performance at Bluestone Home Loans.
The point for brokers is knowing when to reach for another tool. A customer who does not fit a major bank’s criteria may still have a strong income, a sound repayment history and a clear reason for seeking finance. The issue can be the lender’s policy rather than the borrower’s underlying financial position.
“Many brokers still assume specialist lending means complicated processes, slower turnaround times or endless back-and-forth. The reality is that specialist lenders, like Bluestone Home Loans, are often built to assess complexity every day,” Taylor explains.
That familiarity can change how a broker approaches a deal that falls outside standard policy. Instead of trying to force the application into a framework that does not fit, the broker can have an early conversation about what the customer is trying to achieve and which lending pathway may suit.
“When a deal is outside standard policy, we’re usually looking for ways to understand the story rather than looking for reasons to decline it,” Taylor says.
The value of that approach becomes more apparent as borrowers accumulate more complicated financial circumstances.
“That’s a very different mindset, and it’s why it’s so important for brokers to engage early and have a conversation about the scenario,” Taylor adds.
Bluestone Home Loans has been helping brokers find a way forward for over 25 years. As one of Australia’s leading non-bank lenders, we specialise in supporting self-employed clients, those with complex income, and borrowers who might not fit the traditional mould. We look beyond the obvious, working closely with brokers to uncover solutions that help more clients move forward.
Our approach is simple, flexible and built on strong relationships. It’s about backing your expertise with a team that’s ready to dig deeper, move faster and support your growth. Helping you turn more scenarios into settled deals is a Bluestone thing.
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“The brokers who embrace specialist lending aren’t necessarily finding different customers. They’re finding more ways to help the customers they’re already talking to. That’s where the growth opportunity sits”
Aaron Taylor, Bluestone Home Loans
When the numbers tell only part of the story
A profile that looks straightforward on paper does not always translate into an approval. This is becoming particularly relevant for investors and other borrowers whose debt position has changed as their financial circumstances have developed.
“We’re seeing more borrowers affected by policy constraints rather than credit quality issues,” Taylor says.
One result is a decline in mortgage lending, which has accelerated in recent months. Equifax data shows that overall mortgage demand turned negative from April and fell 18.8% by June before easing slightly to a 16.4% decline in July. First-home-buyer demand followed a similar arc, swinging from a modest early-year gain to a 19.1% year-on-year fall by July.
Refinancing has cooled just as fast, and borrowers switching to a different lender pulled back harder than those refinancing with their existing one, down 8.4% year-on-year in July against a much steeper 22.4% drop in same-lender refinancing.
Multiple investment properties can produce a more complicated overall lending position. Existing debt can also limit the amount a major bank is prepared to lend, even when the borrower has managed previous commitments successfully.
“A borrower might have strong income, a solid repayment history and a clear strategy, but because they’re carrying multiple investment properties, have existing debt, or have experienced property value growth that has encouraged further borrowing, they can exceed a lender’s appetite,” Taylor explains.
The distinction is important for brokers assessing what to do next. A decline from one lender does not necessarily answer the bigger question of whether the customer can be responsibly supported elsewhere.
“These aren’t necessarily risky borrowers. They’re often successful borrowers whose circumstances have become more complex. That’s where specialist lenders can provide brokers with additional options and flexibility,” Taylor says.
For a broker, the practical skill is recognising when a policy constraint has become the barrier, rather than assuming the customer’s circumstances have made the deal unworkable.
Better data is changing the assessment
Income that does not arrive in the form of a conventional payslip has long presented challenges for traditional lending models. Self-employed borrowers can have fluctuating income, business expenses and financial statements that require more interpretation than a standard employment application.
Technology is giving lenders more information with which to make those assessments.
“The biggest change has been the availability and quality of data,” Taylor says.
The difference is not simply the volume of information, but also the quality of the data.
“Technology has given lenders better tools to assess business performance, cash flow and income patterns than ever before. Instead of relying on a single document or snapshot in time, lenders can build a broader view of a borrower’s financial position,” Taylor explains.
The borrowers themselves are also changing. Self-employment and additional income streams have become more common, giving lenders greater exposure to different ways of earning money.
Australian Bureau of Statistics data shows just how widespread that shift has become. In the March 2026 quarter, 5.7% of employed men and 7.2% of employed women held more than one job, seasonally adjusted, representing 436,200 men and 541,400 women across the country. Both rates have trended upward since March 2021, when they sat at 5.5% for men and 6.7% for women, despite some periodic fluctuations.
“The self-employed market and the gig/side hustle economy continues to grow, which means lenders have become more experienced in understanding how modern businesses and individuals make money,” Taylor says.
“That combination has created greater confidence when assessing borrowers who don’t fit traditional documentation requirements,” he adds.
The absence of a conventional payslip does not necessarily mean the absence of useful evidence about a borrower’s capacity to repay.
The customers already in the database
The opportunity for brokers who have not yet incorporated specialist lending into their business may be closer than a new lead-generation campaign.
“The biggest opportunity could be sitting right there in a broker’s existing database,” Taylor says.
“Most brokers are already speaking to customers who don’t fit neatly into traditional lending. Self-employed borrowers, investors with growing portfolios, clients who’ve changed jobs, people carrying higher debt levels, or borrowers with non-traditional income sources. Ten years ago, they may have been the exception. Today, they’re increasingly the norm,” he says.
That creates a different way of looking at specialist lending. Rather than being a separate customer segment that requires a broker to build a new business around it, it can become another capability within an existing customer relationship.
“The brokers who embrace specialist lending aren’t necessarily finding different customers. They’re finding more ways to help the customers they’re already talking to. That’s where the growth opportunity sits,” Taylor says.
For brokers, there is a retention angle as well as a new business opportunity. A customer who starts with a straightforward home loan may not remain in the same lending category indefinitely.
Private credit changes the conversation
The increased attention around private credit has also brought alternative lending further into conversations between brokers and borrowers.
Taylor sees a distinction between private credit and established specialist non-bank lending, particularly in how borrowers and brokers perceive the two.
“While private credit has attracted a lot of attention recently, many brokers and borrowers still view it as a solution for very specific circumstances, often because it’s perceived as higher risk, shorter term or more expensive,” Taylor says.
Specialist non-bank lending occupies a different position, with established lenders operating under responsible lending obligations and offering products designed around borrowers who do not meet traditional lending criteria. The wider discussion around alternative finance may nevertheless be helping brokers become more comfortable considering options beyond the major banks.
“What the growing private credit conversation is doing is highlighting a broader reality that not every borrower can be served by the major banks,” Taylor says. “As awareness of alternative lending options increases, brokers are becoming more comfortable looking beyond the traditional lenders and considering the other options available to them,” Taylor adds.
That can make specialist lending a more familiar part of the broker’s toolkit rather than an option reserved for the final stage of an unsuccessful application.
“Five years from now, customers will still want guidance and confidence, but the pathways to achieving an approval may look very different from one customer to the next”
The broker business is changing, too
The longer-term opportunity may be less about becoming a specialist broker and more about becoming a broker with a broader range of solutions.
“The brokers who thrive in this market will be the ones who lead with solutions rather than products,” Taylor says.
The customer’s needs can change considerably over the course of a relationship.
“Five years from now, customers will still want guidance and confidence, but the pathways to achieving an approval may look very different from one customer to the next,” Taylor explains.
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Published 31 Aug 2026
Aaron Taylor, Bluestone Home Loans
Source: Equifax
Overall mortgage demand
Total refinance
Refinance with same lender
Refinance with different lender
New mortgages (first home buyers)
Mortgage lending volumes declining
+10.7%
+12.4%
+16.2%
+8.6%
+7.1%
Jan 2026
+8.9%
+11.4%
+15.6%
+7.2%
+3.9%
Feb 2026
+3%
+4.7%
+7.8%
+1.5%
-0.4%
Mar 2026
-0.9%
-0.6%
+1.7%
-1.8%
-2.7%
Apr 2026
-6.6%
-5.6%
-7%
-4.2%
-9.1%
May 2026
-18.8%
-17%
-18.8%
-15.2%
-20.9%
Jun 2026
-16.4%
-15.5%
-22.4%
-8.4%
-19.1%
Jul 2026
Source: ABS Multiple-Job Holders Data
Multiple-job holding rate – Female (%)
8
7
6
5
Multiple-job holding rate and levels by sex
5.5
5.7
5.3
5.6
5.7
5.9
5.8
5.8
5.9
6.0
6.0
5.9
6.1
6.1
6.3
6.2
6.0
5.9
5.9
5.8
5.7
Multiple-job holding rate – Male (%)
6.7
7.2
5.7
5.5
Mar 2021
Jun 2021
Sep 2021
Dec 2021
Mar 2022
Jun 2022
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Dec 2023
Mar 2024
Jun 2024
Sep 2024
Dec 2024
Mar 2025
Jun 2025
Sep 2025
Dec 2025
Mar 2026
That makes the breadth of a broker’s knowledge increasingly relevant. A customer does not necessarily become less valuable because their circumstances become more complicated. In some cases, the complexity is a sign that the customer’s financial life has developed.
“The customers they help today with their first home may have different needs in five years, and brokers will use that expanded knowledge base to be able to help their existing customers, as well as new ones, with different solutions to future problems,” Taylor says.
Broker capability needs to extend beyond familiarity with a small number of standard lending pathways in the years ahead.
“Brokers will need broader lending knowledge, stronger lender relationships and an openness to look beyond a single channel when structuring deals and outcomes,” Taylor adds.
For a brokerage, that can turn specialist lending into part of a broader customer strategy. It gives the broker another option when a customer’s circumstances change and another reason for the customer to maintain the relationship.
The objective is not necessarily to make every broker a specialist. It is to give more brokers the confidence to recognise when a conventional solution is no longer the right fit and know where to look next.
“It’s becoming the broker who can help more customers, more often,” Taylor says. “That’s where specialist lending fits into the future of the industry.”