The deals you're missing are changing shape

Australia's lending market is under pressure from higher interest rates, tighter affordability, rising living costs and a persistent housing shortage. More borrowers no longer fit traditional lending criteria. Specialist lending has moved from the fringes to the centre, becoming a routine tool for brokers. With 1.1 million self-employed Australians and a growing number of financially complex borrowers, the shift is reshaping how deals get done.

Why is specialist lending becoming a mainstream option for Australian mortgage brokers?

Specialist lending has shifted from a fallback to a front-line tool for Australian brokers. Higher interest rates and tighter credit policy mean more borrowers present with financial profiles that don't align with automated assessment models. The issue isn't borrower quality; it's lender fit. Tony MacRae, chief commercial officer at Bluestone Home Loans, puts it plainly: 'Specialist lending gives people a fair chance when their situation doesn't fit a rigid rulebook.' Brokers who understand this distinction are finding opportunities that others pass over entirely. What once sat at the edge of lending practice now sits at the centre of how experienced brokers move complex deals forward and build lasting client relationships.

Who are the borrowers that specialist lending in Australia is designed to serve?

The borrower profiles driving demand for specialist lending are broad and growing. They include self-employed clients whose income doesn't follow a traditional pattern, PAYG borrowers with minor credit blips linked to cost-of-living pressures, high-income professionals whose income structures fall outside automated models and clients consolidating debt. MacRae describes the shift as moving 'from credit challenged to financially complex'. These are not unserviceable borrowers. They can repay their loans. The problem is that conventional assessment methods don't always capture their full financial story, leaving capable borrowers without a clear path to finance and leaving brokers without a solution to offer.

How significant is the self-employed borrower challenge for Australian mortgage brokers?

Self-employed Australians number 1.1 million, representing 7.6% of all employed Australians, according to an Australian Bureau of Statistics report on working arrangements dated August 2025. Yet these borrowers top the list of hardest deals to place through mainstream lenders. MacRae notes that 'alternative income verification can make a real difference for business owners' whose income doesn't follow a standard payslip structure. Brokers who can confidently assess self-employed scenarios, rather than referring them elsewhere, are accessing a large and underserved segment of the market. Understanding how to document and present these cases is one of the clearest advantages a specialist-ready broker has over the competition.

How many Australian brokers are turning away clients because of credit policy?

The scale of missed opportunity is substantial. According to Bluestone's Broker Insights Survey 2026, 75% of brokers turned away at least one client due to credit policy in the past 12 months, and 34% turned away three or more. MacRae says the goal is for brokers to have 'a broker-first approach' backed by 'practical problem-solving', rather than leaving complex clients without a path forward. Each turned-away client represents not just a lost transaction but a potential long-term relationship handed to a competitor who was better prepared. The data points to a structural gap in the market that specialist lending is well placed to fill.

How does Bluestone assess home loan applications for borrowers with complex finances?

Bluestone has built its approach around assessing the full picture rather than surface-level data. That means understanding the story behind a credit history, recognising strong cash flow beyond standard documentation and applying common sense alongside credit discipline. With more than 25 years of experience supporting brokers, Bluestone offers flexible assessments, speed and certainty in decision-making and a consistent credit approach brokers can rely on. Its product range covers Near Prime, Specialist and Specialist+ options, designed to meet borrowers where they are rather than where policy expects them to be. MacRae says the aim is to back brokers with 'practical problem-solving' so that complex files have a clear path to approval.

Can you give a real example of specialist lending helping a broker close a deal through Bluestone?

MacRae shared a direct example of how the approach works in practice. 'A broker approached Bluestone with a time-sensitive opportunity: a high-income client needing to refinance and purchase quickly due to personal circumstances', MacRae says. 'Their non-PAYG income made securing finance through mainstream lenders challenging. By workshopping the scenario directly with our team, the broker was able to structure a solution that fit the client's situation and move swiftly to settlement. Since then, they've continued to partner with us, a reflection of the confidence built through responsive support, practical problem-solving and a strong broker-first approach.' The deal didn't rescue a struggling file. It opened an ongoing relationship.

How can specialist lending help Australian brokers build longer-term client relationships?

Specialist lending, handled well, is a stepping stone rather than a dead end. When a client's current financial conduct is strong, their history is explainable and their servicing is clear, a specialist loan can stabilise their position and eventually transition them back to prime lending as circumstances improve. Clients remember the brokers who found a way forward when it wasn't straightforward. MacRae says Bluestone's focus remains on creating 'a structure that works now, while opening the door to future opportunity'. That kind of outcome builds loyalty that generates more value over time, turning one complex deal into a repeat client and a source of referrals.

Featured expert

Tony MacRae: chief commercial officer, Bluestone Home Loans; leads broker partnerships and specialist lending strategy; Bluestone is an Australian non-bank mortgage lender with more than 25 years of experience supporting brokers with non-prime and specialist home loan solutions.