Dial M for mortgage: Inside Australia’s near prime shift
As cost pressures, tax debts and tighter bank rules bite, brokers are turning to near prime lenders as a responsible bridge between complexity and prime
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The phone rings in a mortgage broker’s office.
10:23 am, Tuesday. Fluorescent lights, a row of monitors open on lender portals, a half-finished serviceability calculator blinking on one screen. Rain ticks against office window.
On the other end, a small business owner sits at a cluttered kitchen table, cellphone pressed to ear, eyes fixed on an email from the Australian Taxation Office. COVID-era payment arrangements are being called in. Credit cards that quietly kept the doors open during lockdowns are now near their limits; a small equipment loan and a slipped-behind ATO plan add to the pile.
Out in his shop, the story looks fine: the business is brisk now, profit and loss looking solid, but the financial story doesn’t fit a neat box, with a trading history split across entities and statements scarred by a few bad months.
Dramatic music swells. Fade to opening credits.
Harkness notes that near prime has become a home for borrowers whose balance sheets reflect a period of adjustment, rather than weakness. Other non-banks agree.
“Over the past year, Resimac has seen a rise in financially capable, clean-credit borrowers whose profiles simply don’t meet the requirements of a traditional bank, seeking financing,” says John Athanas, general manager of sales and distribution at Resimac. “Many are self-employed professionals, contractors or business owners with diverse income streams that reflect today’s economy.”
Athanas points out that this shift is being driven as much by how borrowers earn and structure their income as by any deterioration in credit quality.
Alongside this, a growing number of Australians are restructuring their careers or transitioning into self-employment to take greater control of their income and working arrangements. While these borrowers may have a shorter trading or employment history, many bring solid industry experience, established client bases and early evidence of consistent performance. This places them just outside traditional prime criteria despite sound credit profiles.
“Near prime borrowers usually have credit profiles that sit between ‘prime’ and ‘specialist’. These folks are often in a transition phase with their credit. The rising cost of living is pushing more people into the near prime category,” says Pepper Money general manager for mortgages and commercial Barry Saoud. Economic uncertainty and stricter lending criteria from traditional banks are also making borrowers look for alternative financing options with non-banks.
“What we’re seeing now is a group of creditworthy borrowers who sit just outside prime for very normal reasons – not because they’re risky,” Harkness says. “These aren’t ‘non-conforming’ borrowers – they’re people whose financial picture is complex, evolving or still taking shape. That’s what ‘near prime’ means for us at ORDE: a disciplined middle ground that helps borrowers capture opportunities, steady cash flow, simplify commitments and rebuild towards prime as their situation strengthens.”
“For many customers, including near prime, having the flexibility to consolidate credit cards, personal loans, car finance or even ATO debts into a mortgage can ease budgeting pressure and reduce monthly commitments,” says Taylor.
This can help those burdened with debt.
“In the current environment of cost of living pressures, near prime does act as a practical safety valve – but always within responsible lending boundaries,” Harkness says. “Many borrowers have held steady through rising costs but may have fallen marginally behind on clearing higher cost debts like credit cards or personal loans. A near prime restructure can consolidate those debts, reduce financial stress and make budgeting far more predictable.”
Used appropriately, near prime is less about stretching borrowers and more about resetting their financial footing so they can weather ongoing pressures.
“Responsible access to credit is about ensuring the loan supports the borrower’s goals and repayments remain affordable, regardless of how the borrower chooses to work,” Athanas says. “Equally, debt consolidation features offered by non-banks help borrowers streamline their finances, reduce complexity and create more predictable cash flow.”
When structures are well designed, near prime facilities can give borrowers clarity and control over their cash flow, even as broader economic conditions remain challenging.
“Near prime lending, as offered by Pepper Money, is specifically tailored to provide flexible solutions for borrowers who may not fit the traditional lending criteria but still demonstrate a solid capacity to repay,” Saoud says. Pepper Money’s approach includes accepting short-term ABNs starting at 12 months, with support for alternative income evidence such as accountant letters, six months’ BAS, or six months’ business bank statements for self-employed borrowers who don’t have full financials.
Near prime lenders typically take a different approach to income verification, one that can benefit borrowers whose financial situations are improving but haven’t yet generated the historical documentation that banks require. This forward-looking assessment methodology can mean the difference between approval and decline for borrowers in transition.
From ORDE’s perspective, near prime has evolved into a structured midpoint that allows borrowers to keep progressing while their documentation and financial story catch up.
“We’re also seeing more borrowers seeking structures that better match their evolving circumstances. Rising property prices and business expansion have naturally led to higher loan sizes and LVR expectations, not as a sign of strain but as a reflection of ambition and success,” Athanas says. “For these reasons and more, many borrowers are turning to near prime options offered by non-bank lenders, like alt-doc loans.”
Resimac’s experience underlines the way near prime products are being used proactively by growing, opportunity-seeking clients rather than only as a last resort.
The profile extends beyond tax debt. Self-employed borrowers with limited trading history find themselves in a peculiar position: their businesses may be thriving, but without two years of financial statements, bank algorithms show red.
The safety valve mechanism Near prime lending’s role as a pressure release in the credit system has become more pronounced as mainstream lenders tighten their approach. APRA’s focus on debt-to-income ratios has practical implications that ripple through the broker channel.
“Looking ahead, tighter debt-to-income limits for banks could also move more investors with high DTI ratios into the near prime space,” Smith says. “Brokers who understand this trend can unlock real opportunities.”
Smith sees growing scope for brokers to use near prime as a strategic tool for otherwise strong borrowers constrained by policy settings rather than performance.
The mathematics of debt consolidation often reveal substantial benefits. Bringing together multiple higher-rate facilities into a single mortgage can materially reduce monthly outgoings, even if the interest rate sits above prime.
Aaron Taylor, head of non-standard lending at Bluestone, points to the practical relief that consolidation can deliver for borrowers managing multiple commitments.
ORDE Financial is a non-bank lender built exclusively for brokers, combining human and credit expertise with innovative technology to help brokers build stronger futures for their clients. We reflect the reality of today’s borrowers, from SMEs with complex needs to near prime clients seeking clearer paths forward. Since 2020, ORDE has funded more than $10 billion in loans and supported over 16,000 borrowers – all through brokers. We offer residential, commercial, SMSF and construction loans and other specialised solutions, with fast decisions, deep credit insight and a streamlined digital experience. With no clawbacks, one accreditation and no channel conflict, we help brokers deliver better, faster outcomes that support borrowers’ long-term financial success – building futures with every deal.
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Homeownership is a fundamental part of the Australian dream. However, the path can be challenging, especially when traditional lending can be strict and unforgiving. We’re here to change that. Since 2000, Bluestone Home Loans has been helping borrowers with complex or unique financial situations access the market with confidence − offering a chance to purchase property when others won’t − by providing tailored lending solutions. We empower brokers to serve a broader range of clients, from self-employed professionals to borrowers with past credit issues or those seeking niche lending options. With a 25-year legacy, Bluestone Home Loans has become a trusted leader in the Australian lending market, known for delivering innovative, flexible and straightforward solutions that break the mould of traditional lending.
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Responsible lending boundaries
The question of where responsible lending ends and over-extension begins sits at the heart of near prime lending’s credibility. Lenders in this space are acutely aware that their role involves balancing access to credit against the risk of worsening a borrower’s position.
“For us, the line is clear: if the structure improves stability and sustainability, it’s responsible. If it adds strain, it’s not,” Harkness says. “Used well, near prime becomes a measured pathway for borrowers to stabilise, rebuild resilience and move back towards prime over time.” Non-banks frame near prime as a transition mechanism whose success should be judged by improved resilience rather than simply access to more credit.
As one of Australia’s leading non-bank lenders, Liberty offers innovative solutions to support customers with greater choice. For nearly 30 years, this free-thinking approach to loan solutions has seen more than 900,000 customers across a wide range of home, car, business and personal loans, as well as SMSF lending and insurance. Liberty remains the only non-bank lender with an investment-grade credit rating offering custom and prime solutions to help more people get financial.
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“For us, the line is clear: if the structure improves stability and sustainability, it’s responsible. If it adds strain, it’s not”
Ryan Harkness, ORDE Financial
In Partnership with
Tony MacRae, chief commercial officer at Bluestone, sees the alt-doc segment continuing to expand as self-employment becomes more common and legacy debts from the pandemic period come due.
“The alt-doc segment continues to grow, driven in a large way by the rise of self-employed Australians post-COVID. Many of these businesses are still finding their feet post-COVID, and with the ATO now focused on closing out debts from that period, cost of living pressures are adding another layer of complexity,” says MacRae. “More borrowers are turning to lenders who can offer practical, solution-based options, considering recent business performance and providing flexibility for things like ATO debt consolidation.”
David Smith, chief distribution officer at Liberty, says, “Near prime lending often suits borrowers requiring greater understanding of their situation or looking to consolidate debt. Over the past year, we’ve seen more small business impacted by tax debt, which can categorise borrowers as near prime candidates.”
Smith notes that this combination of complexity and tax exposure is increasingly steering otherwise solid clients into near prime solutions rather than shutting them out of the market altogether.
“One of the notable shifts within the near prime segment has been an increased focus on restructuring existing financial commitments to strengthen borrower positions,” says ORDE Financial’s chief operating officer, Ryan Harkness. “In many cases, this near prime classification is not driven by life-changing events. It’s the result of temporary financial pressure as households adjust spending and lifestyle choices following a period where cost of living pressures and rapid interest rate increases outpaced income growth and expense adjustment.”
“Near prime lending opens the door for borrowers who may not fit the traditional mould, and this is where Liberty excels,” Smith says.
He emphasises that in Liberty’s model, responsible access to credit is grounded in a detailed understanding of context rather than a narrow focus on raw metrics.
The emphasis on curiosity, on asking questions that go beyond the application form, reflects a different credit philosophy. Near prime lending, done properly, isn’t about lowering standards but about applying a different, often more granular, analysis to complex situations.
“At Liberty, we assess each borrower’s situation holistically, asking the right questions and looking beyond the numbers on an application to find solutions that genuinely fit,” Smith says.
Near prime decisions are built around narrative and nuance rather than box ticking alone.
“Looking ahead, tighter debt-to-income limits for banks could also move more investors with high DTI ratios into the near prime space. Brokers who understand this trend can unlock real opportunities”
David Smith, Liberty
FIVE YEARS AGO, this opening scene might have ended with the broker making an apologetic referral elsewhere. Today, it’s the start of a different kind of lending relationship.
Australia’s near prime lending sector is experiencing a quiet transformation. What was once viewed as a niche corner of the mortgage market is becoming an essential tool for brokers facing clients squeezed by persistent cost of living pressures, tightening bank servicing criteria and the long tail of pandemic-era financial stress. The changing face of near prime The near prime category is increasingly populated by borrowers whose recent history is messy but whose underlying income and business performance remain sound. Many run profitable businesses with strong cash flow, but pandemic support measures and subsequent trading volatility have left them with obligations that need resolving.
One reason is that the Australian Taxation Office’s renewed enforcement drive has created a distinct cohort of borrowers who, though otherwise creditworthy, are carrying tax liabilities that disqualify them from mainstream lending. One in five SMEs (22%) are carrying outstanding ATO debt, with higher incidence among small SMEs (24%) versus large (20%). Over 65% of the ATO’s $55.9 billion in collectible debt is owed by small businesses, with the median size of the debt for small business owners seeking support from the Small Business Debt Helpline in 2025 estimated at $70,000.
Industry experts
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Stewart Saunders
Heritage Bank
Darren McLeod
Beyond Bank
Fernando Lemos
Bank Australia
Industry experts
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Bank Australia
Fernando Lemos
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Beyond Bank
Darren McLeod
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Heritage Bank
Stewart Saunders
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Industry experts
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Bank Australia
Fernando Lemos
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Beyond Bank
Darren McLeod
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Heritage Bank
Stewart Saunders
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
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Ryan Harkness
ORDE Financial
John Athanas
Resimac
David Smith
Liberty
David Smith was appointed as Liberty’s chief distribution officer in January 2024. Strategy-driven with a customer-first ethos, Smith is responsible for the broader distribution platforms of the Liberty Financial Group, including its business partner relationships. Smith brings a wealth of knowledge and expertise, having spent over 20 years in the financial services sector. He holds a Bachelor of Business (Hons) from Brunel University London and a Postgraduate Diploma in Marketing from the UK Chartered Institute of Marketing.
Liberty
David Smith
John Athanas joined Resimac in 2025, and as general manager of sales and distribution he is responsible for driving distribution of Resimac’s mortgage and asset finance products through the broker and wholesale channels. Athanas has over 30 years’ experience in banking and finance and has held various sales, operations and credit roles with lenders, aggregators and brokerage firms, including ANZ Bank, Macquarie Bank, Bankwest and Mortgage Choice. He holds an advanced diploma of leadership and management along with a diploma in finance and mortgage broking.
Resimac
John Athanas
Ryan Harkness co‑founded ORDE Financial after years in non-banks, seeing a clear opportunity to give brokers better service and, in turn, deliver better customer outcomes. As COO, he oversees credit, treasury and operations, with a focus on clear decisions and quick SLAs. Harkness values human judgement supported by practical data and innovation – important for SME borrowers, self‑employed clients and people with more complex stories. He believes brokers play a key role in building Australia’s future, and ORDE’s broker‑only model is built to back them with consistency and fairness.
ORDE Financial
Ryan Harkness
Published 16 Feb 2026
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ATO’s growing role in forcing bankruptcies
Persistent misconceptions
Despite the sector’s growth and maturation, brokers often approach near prime lending with outdated assumptions. One common misconception centres on effort versus reward.
MacRae says the terminology itself can be misleading and that it contributes to misunderstandings about the quality of borrowers in this segment.
“We don’t love the term ‘near prime’. These borrowers aren’t lacking anything and can be equally worthy borrowers; they simply navigate more unique or complex financials than a traditional prime customer,” says MacRae. “The misconception that near prime equals poor quality, hard work or not worth it are total myths. With the right approach, brokers can deliver solutions others say are too hard, turning near prime customers into very loyal advocates.”
Another problem centres on risk.
“A common misconception is that near prime lending reflects poor credit quality or borrower character,” Harkness says. “In reality, most borrowers in this segment – including SME owners and self-employed clients – are strong but temporarily fall outside prime criteria due to employment changes, seasonal income patterns or short-term life events.”
Removing the stigma around near prime is central to helping more borrowers see it as a constructive, time-bound stage rather than a label. “When people hear the term ‘near prime lending’, many think it’s only for ‘problem’ borrowers,” Athanas says. “Another misconception is that ‘near prime’ means lower lending standards. In truth, non-banks often consider a borrower’s complete financial story, recognising strengths that the algorithms of traditional banks overlook.”
Education needs to underscore that near prime is about different assessment methods, not diminished discipline.
“We don’t love the term ‘near prime’. These borrowers aren’t lacking anything and can be equally worthy borrowers; they simply navigate more unique or complex financials than a traditional prime customer”
Tony MacRae, Bluestone HOME Loans
“Some brokers view near prime lending as more difficult or higher risk and assume there’s not as much opportunity,” Smith says. “In reality, with the right support, it’s straightforward and the opportunities are huge. Brokers who talk to their BDMs or lean on scenario teams quickly see how simple the process can be.”
Asking the right questions early can unlock long-term relationships that extend well beyond a single transaction.
“Being curious can pay dividends for a broker … [By] understanding their client’s situation, then they can become a customer for life,” says Taylor.
The perception of difficulty often stems from unfamiliarity rather than genuine complexity. Lenders have invested heavily in making near prime processes more accessible, but awareness doesn’t always keep pace with capability.
“Supporting borrowers through these transitions is one of the most rewarding aspects of the segment,” Harkness says. “By working closely with brokers to remove the stigma often associated with near prime lending, lenders can help guide customers through a genuine financial progression – building trust, restoring confidence and supporting stronger long-term outcomes.”
When lenders and brokers reposition near prime as a progression pathway, it can strengthen confidence and engagement on all sides. The client-for-life approach The transactional view of mortgage broking, where success is measured by settlement counts and upfront commissions, sits awkwardly with how near prime lending actually works. The economics and the client outcomes align better with a longer-term relationship model.
“We need to change the mindset that offering a near prime solution is a ‘fallback’,” Saoud says. “In reality, clients who don’t meet prime criteria aren’t choosing between products − they simply won’t qualify for prime and will need an alternative. For brokers, the opportunity is to frame near prime as a proactive, supportive solution that ensures the client still has a viable path forward, rather than being turned down altogether.”
This transparency can actually boost a broker’s credibility, according to Saoud.
MacRae emphasises that the near prime label shouldn’t define the entire customer relationship.
“Success isn’t just about a label; it’s about improving financial health and building resilience over time. Not every borrower will transition to ‘prime’, and that’s okay; it’s not something borrowers need to move on from,” says MacRae.
“Myth: near prime is a tiny niche − not worth my focus as a broker. Reality: near prime lending is one of the fastest-growing segments in Australian mortgages,” Saoud says. “Brokers who ignore this space could be missing out on serving a large pool of customers. On the flip side, those who become near prime experts are finding it an excellent avenue to grow their business and create very loyal clients.”
Many non-banks see the near prime category as an endless opportunity given the vast range of self-employed and real-life scenarios.
Aaron Taylor
Bluestone Home Loans
Tony MacRae
Bluestone Home Loans
Barry Saoud
Pepper Money
As head of non-standard lending at Bluestone, Aaron Taylor is dedicated to helping mortgage brokers find solutions for clients whose circumstances fall outside traditional lending criteria. With a strong background in business development, broker support and specialist lending, Taylor brings deep industry knowledge and a practical approach to every conversation.
Bluestone Home Loans
Aaron Taylor
Tony MacRae stepped into the role of chief commercial officer at Bluestone in August 2023, bringing with him a wealth of experience in financial services. He spent a decade with the Westpac Group, where he served as acting CEO of RAMS and led third party distribution at Westpac. Known throughout the industry for his ability to drive sales initiatives and strategic direction, MacRae excels at building partnerships and leading teams towards impressive business growth. At Bluestone, he is focused on empowering the company’s broker partners to better serve customers. In addition to his work at Bluestone, MacRae has dedicated his time over the last 11 years to the Royal Flying Doctors Service South Eastern Section as a board member and treasurer. He holds a Bachelor of Economics from Macquarie University.
Bluestone Home Loans
Tony MacRae
Barry Saoud joined Pepper Money in July 2021. As general manager of mortgages and commercial lending, he is responsible for the firm’s strategic direction and operating performance across sales, product, credit and operations functions for Australia and New Zealand mortgages, commercial loans, personal loans and direct sales. With over two decades’ experience in financial services, Saoud has held numerous roles across areas ranging from legal to company secretary, sales and product management at the likes of Aussie (Home Loans), GE Capital, HSBC and Norton Rose Fulbright. He is a passionate leader with proven ability to grow businesses and exceed targets.
Pepper Money
Barry Saoud
12
69
Total matters filed in bankruptcy list by ATO
FY22
FY23
241
FY24
253
FY25
As a % of all forced bankruptcy matters
13%
14%
5%
1%
True success in this segment comes when brokers stay engaged through multiple stages of the borrower’s financial journey, not just until settlement.
“[It’s about] rebuilding strength, creating stability or returning to prime when the time is right,” Harkness says. “Brokers lead that process with the borrower’s best interests at the centre.”
Brokers act as long-term guides, using near prime as one of several tools in a planned route back to full financial strength.
Source: ScotPac bi-annual SME Growth Index
11%
2014 (Sep)
SME intentions to fund new growth using non-bank borrowing
10
20
30
40
50
60
2015 (Sep)
2018 (Mar)
2019 (Sep)
2020 (Nov)
2021 (Sep)
2022 (Apr)
2022 (Sep)
2024 (Mar)
2023 (Mar)
2025 (Apr)
2025 (Sep)
15%
22%
19%
25%
29%
33%
30%
47%
52%
55%
55%
Against this background, more SMEs continue to prefer non-bank lending over other types of lending.
“A successful journey is one where a borrower’s financial position becomes stronger, simpler and more flexible over time,” Athanas says. “That may mean moving to a full-doc loan or seeking a rate review with the existing lender as circumstances change.”
Achieving the initial funding is important, but more so is ensuring that the client’s long-term options and resilience improve.
Rather than viewing near prime as a one-off solution for a difficult case, it becomes part of a broader client journey that might include periods in both near prime and prime facilities as circumstances change.
“Consolidating multiple debts into a single near prime loan at a lower rate can help borrowers save money and establish a clear six-to-12-month repayment history, supporting a transition to a prime facility,” Smith says.
Smith emphasises that thoughtful structuring at the near prime stage can actively prepare the ground for a future prime refinance.
The pathway isn’t always about transition, though. Some borrowers remain in near prime lending not because of adverse circumstances but because of how they structure their finances.
“Success starts with a clear plan that maps the milestones needed to unlock better pricing and more options,” Athanas says. “Regular broker check-ins celebrate progress, track improvements and uncover opportunities to further strengthen the borrower’s position over time.”
Resimac is a leading non-bank lender. Its fully integrated business model comprises originating, servicing and funding prime, non-conforming residential mortgages and asset finance products. Resimac has in excess of 155,000 customers with a portfolio of home loans on balance sheet of over $13 billion, an asset finance portfolio of over $2.5 billion, and total assets under management of almost $16 billion as at 30 June 2025. Resimac has access to a diversified funding platform with multiple warehouse lines provided by domestic and offshore banks for short-term funding in addition to a global securitisation program to fund its assets longer term.
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Technology and human judgement As automation reshapes lending, near prime occupies an interesting position. The sector benefits from better data and faster processing, but the nature of near prime assessment resists full automation.
MacRae sees technology as a tool to streamline processes while preserving the relationship focus that remains central to near prime lending.
“Digital tools, AI and data help us streamline and speed up processes, but the real value comes from human judgement and the conversations our BDMs have with brokers,” says MacRae. “It’s about understanding the customer’s situation and understanding detail an algorithm can’t, particularly when we’re considering the full story of the borrower to make a lending decision.”
Near prime lending still relies heavily on human credit judgement. Digital tools can speed things up, but they can’t replace the ability to understand a borrower’s story – what’s changed, what’s stabilised and why their situation sits just outside prime. Automation supports consistency, but judgement ensures the sector doesn’t lose sight of the story, character and context, which remain essential in near prime decisions.
“Digital processes make assessment and decision-making faster, smoother and more transparent,” Athanas says. “Yet human judgement remains essential, especially for borrowers whose financials come with a story.”
Near prime outcomes are strongest when technology and experienced assessors work in tandem rather than in competition. “At Liberty, we’re embracing digital processes to help us move faster,” Smith says. “However, we don’t use automation to decline credit. Final decisions are always made by humans. While data and analytics help inform and guide us, our free-thinking approach has always been to look at the whole picture and dig deeper into each borrower’s story to make credit decisions.”
This hybrid approach, using technology to handle routine tasks while preserving human judgement for complex decisions, appears to be where the sector is settling.
“Technology is also creating remarkable opportunities in near prime lending. Brokers should leverage technology to streamline application submissions and track the progress of each loan, ensuring a smooth and efficient experience for both the client and the lender,” Saoud says.
Pepper Money’s flagship tech tool, the Pepper Product Selector (PPS), is known throughout the industry for speed and accuracy of decision, according to Saoud.
“Being curious can pay dividends for a broker … [By] understanding their client’s situation, then they can become a customer for life”
Aaron Taylor, Bluestone Home Loans
Best practice and opportunity For brokers looking to build or expand their near prime capabilities, the starting point is information quality. Lenders consistently point to thorough documentation and clear communication as the factors that accelerate approvals and improve outcomes.
“Best practice comes down to clear communication and information sharing between brokers and lenders,” Smith says. “When brokers provide a complete picture of a borrower that’s packaged and ready to go, lenders can make confident decisions quickly.”
High-quality submissions not only shorten approval times but also help secure more tailored, sustainable structures.
Athanas anticipates that non-banks will continue to widen their role as primary partners for borrowers whose financial lives fall outside traditional frameworks.
“Today’s economy is full of self-employed professionals, contractors and business owners with diverse income streams that no longer fit the narrow lending criteria of the big banks,” Athanas says. “As traditional lenders’ risk appetite changes, non-banks are expanding their role as flexible, forward-thinking partners for borrowers with modern financial lives.”
This might include real-time visibility of loan information, proactive engagement tools and digital servicing platforms that help customers actively manage and improve their financial position over time. From a regulatory perspective, expectations around responsible lending, transparency and customer outcomes will continue to apply consistently across both prime and near prime segments. Banks will continue to play a role at scale within prime, while non-banks remain well positioned to serve customers just outside traditional frameworks – supported by industry bodies that promote consistent disclosure, education and good consumer outcomes.
“Non-bank lenders play a crucial role in the availability of near prime products in Australia. We often have more flexible lending criteria compared to traditional banks, allowing us to cater to a wider range of borrowers,” Saoud says. “Non-bank lenders are also more agile, frequently introducing new products and services that meet the evolving needs of near prime borrowers.”
Ultimately, the evolution of near prime is less about new products and more about better execution – using technology, data and service to help customers progress confidently towards prime over time.
The near prime process, and its ladder up to prime, is an ongoing drama rather than a one-season show. Its characters evolve. With the right broker asking the right questions, and the right lender willing to read past the first page of the file, more borrowers can avoid having the credits roll on them and start setting the scene for a stronger financial sequel.
Pepper Money is a people-focused non-bank, providing a refreshingly real-life approach to lending across home loans, commercial loans, equipment finance and car loans. We work with all sorts of people and businesses, from blue-collar to blue-chip. We take a uniquely flexible human approach, assessing each person’s situation individually. Since 2000, we have helped over 530,000 Australians achieve their financial goals. We’re consistently recognised as Australia’s leading non-bank lender, known for being broker-friendly with supportive and responsive BDMs, and offer a wide range of products that meet different customer needs – especially those of non-conforming and self-employed customers.
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“Near prime lending is one of the fastest-growing segments in Australian mortgages. Brokers who ignore this space could be missing out on serving a large pool of customers”
BARRY SAOUD, PEPPER MONEY
“Best practice engagement from brokers starts with clarity and context. The strongest outcomes come when brokers explain what’s changed, what’s the outcome sought, what’s stabilised and why the proposed structure will benefit their customer,” Harkness says. “Early scenario discussions help us move quickly and structure deals that genuinely strengthen the borrower’s position.”
Saoud adds, “To work effectively with lenders, brokers should focus on building strong, collaborative relationships. This includes understanding each lender’s specific requirements and processes and ensuring that all client applications are complete and accurate.”
Providing thorough documentation and promptly responding to any lender enquiries can help speed up the decision-making process.
“The best brokers approach near prime and alt-doc scenarios with confidence and respect for the borrower’s strengths,” Athanas says. “They position the solution as a strategic fit, not a compromise.”
Athanas believes that when brokers frame near prime confidently and positively, clients are more likely to embrace it as a deliberate step in their financial strategy.
MacRae points to curiosity as the quality that separates brokers who see opportunity from those who see only complexity.
“Be curious. Ask the right questions and understand the full picture,” he says. “That’s how brokers uncover scenarios others might dismiss as ‘too hard’ and deliver real value to customers.”
Beyond process, there’s opportunity in building referral relationships outside traditional real estate agent networks. Accountants, financial planners and law firms all encounter clients with complex lending needs.
“Strong engagement can start by broadening your network as a broker,” says Taylor.
Brokers who invest in understanding non-standard incomes and business structures can position themselves as specialists in a growing, high-value segment.
“The biggest opportunity lies in brokers deepening their expertise or familiarity with self-employed and non-standard-income clients – not unlike themselves,” Athanas says. “It’s a segment full of capable, motivated borrowers who value guidance and clarity.”
When brokers take the time to understand the full narrative, not just the headline numbers, they can help clients rewrite their financial arc: consolidating debts, stabilising cash flow and building a path back towards prime.
Six months later. Same office, same desk.
The broker clicks through to a settlement confirmation. The small business owner’s consolidated loan has funded, with monthly repayments substantially down. The ATO debt is cleared. Room to breathe.
The phone rings again.
Fade to black.
Looking ahead
Looking ahead, the near prime segment is unlikely to materially change in terms of its core purpose or product design. It will continue to operate as a transitional or stepping-stone solution for customers who narrowly fall short of the prime criteria, rather than as a different credit outcome. The underlying need – supporting otherwise sound borrowers through short-term gaps in documentation, employment history or income consistency – will remain consistent.
“Since we pioneered near prime mortgages in Australia back in 2012, Pepper Money has been seeing solid growth in this space. Looking ahead to 2026, brokers can expect even more growth in near prime lending products,” Saoud says.
Pepper Money is talking about using tech and data analytics to better assess creditworthiness, which means more personalised loan options to help a wider range of clients obtain loan approval.
Others also see tech-led changes ahead.
“Where change is most evident, and will continue to accelerate, is in how these borrowers are supported through technology and service,” Harkness says. “Non-banks have led the way in investing in digital platforms that ensure near prime customers have access to the same tools, transparency and self-service functionality as prime borrowers.”
The next phase of evolution may focus less on product and more on improving how near prime customers interact with and manage their loans.
“We’re already seeing recent APRA DTI restrictions reshaping the banking sector. While Liberty is a non-bank, we remain deeply committed to responsible lending and to asking the right questions before making credit decisions,” Smith says.
MacRae sees borrower profiles continuing to evolve in ways that will make the near prime segment increasingly important within the broader lending system.
“Australian borrower profiles are evolving, and complex financials are fast becoming the norm. This segment will only grow in importance over the coming years,” says MacRae. “We expect strong competition and smarter product design that supports financial resilience, options like debt consolidation and structures that help customers strengthen their position over time. Regulatory expectations will rightly keep responsible lending front and centre, something Bluestone has always embraced. Banks will continue to serve prime borrowers, but non-banks like Bluestone play a critical role in offering choice and flexibility for those with more complex financials.”
“A successful journey is one where a borrower’s financial position becomes stronger, simpler and more flexible over time”
John Athanas, Resimac
Source: Who’s Making Australians Bankrupt? A Follow-up Report: Six Years On, Financial Counselling Australia (Dec 2025)
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Stewart Saunders
Heritage Bank
As one of Australia’s leading non-bank lenders, Liberty offers innovative solutions to support customers with greater choice. For nearly 30 years, this free-thinking approach to loan solutions has seen more than 900,000 customers across a wide range of home, car, business and personal loans, as well as SMSF lending and insurance. Liberty remains the only non-bank lender with an investment-grade credit rating offering custom and prime solutions to help more people get financial.
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MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
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Heritage Bank
Stewart Saunders
In Partnership with
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Heritage Bank
Stewart Saunders
Pepper Money is a people-focused non-bank, providing a refreshingly real-life approach to lending across home loans, commercial loans, equipment finance and car loans. We work with all sorts of people and businesses, from blue-collar to blue-chip. We take a uniquely flexible human approach, assessing each person’s situation individually. Since 2000, we have helped over 530,000 Australians achieve their financial goals. We’re consistently recognised as Australia’s leading non-bank lender, known for being broker-friendly with supportive and responsive BDMs, and offer a wide range of products that meet different customer needs – especially those of non-conforming and self-employed customers.
Find out more
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Resources
MPA Pod
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Events
E-mag
Premium content
TV
FOCUS
SMSF
SME
Reverse
Motivation
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Education
Commercial
Alternative lending
Best in Mortgage
Mortgage Industry
Technology
Market updates
Industry trends
Industry moves
Guides
DE&I
Business growth
News