Side Hustle
30 Ways To Pay Off
Homeowner’s CodeBluestone’s Alternative Document Lending Surges
In the realm of home loan news, Bluestone Home Loans has witnessed a significant surge in its alternative document lending segment. This specialized form of lending, known as alt doc lending, is gaining momentum at Bluestone as it requires fewer income verification documents and boasts quicker approval times compared to traditional banks.
Aaron Taylor, the head of non-standard lending at Bluestone, highlighted how alt doc lending is becoming increasingly popular due to the expanding self-employed demographic, a rise in non-resident and expat populations, heightened regulatory oversight from the Australian Taxation Office, and stricter lending criteria imposed by mainstream banks.
The demand for alt doc loans has seen a remarkable increase, with Bluestone recording a 260% surge in alt doc loan volume in 2024, marking a 39-fold rise since 2019. Tony MacRae, the chief commercial officer at Bluestone, emphasized that a significant portion, approximately 60%, of Bluestone’s home loans are extended to self-employed individuals, an underserved yet opportunistic market.
Bluestone’s alt doc lending offerings cater to home loans up to $3 million, encompassing both fixed-rate and variable-rate options, refinancing solutions, and the flexibility to consolidate various debts or access cash for business purposes. Brokers facilitating alt doc loans for clients can benefit from streamlined documentation requirements, quicker approval processes (typically within one to two business days), and a client-centric approach focusing on current financial standings rather than historical tax data.
While alt doc loans may entail slightly higher interest rates compared to conventional mortgages, the emphasis remains on providing tailored financial solutions that mainstream banks may not readily offer. By embracing alt doc lending, brokers have the opportunity to expand their service portfolio, enhance customer outcomes, and differentiate themselves in the competitive home loan market landscape.
Home Loan Handbook
Rattle the Market