Bluestone cuts rates 0.25% to kick off spring lending season

Non-bank lender Bluestone Home Loans is offering a 0.25% rate cut across residential, commercial and SMSF products for new applications to 25 September.

A rate cut for borrowers who don't fit the mainstream mould

Non-bank lender Bluestone Home Loans has launched a time-limited rate discount ahead of the spring property season, offering 0.25 percentage points per annum off rates across its full product range for eligible new applications, Australian Broker reports.

The promotion runs from 17 August to 25 September, applying to all products up to 80% loan-to-value ratio (LVR). New loan applications must be submitted within the promotional window and settled within six months. The discount covers Bluestone's residential, commercial, and SMSF lending suite.

Bluestone chief commercial officer Tony MacRae described the offer as a practical prompt for brokers to reconnect with borrowers who have been sitting on the sidelines. "While the RBA has left rates unchanged, many borrowers may still be weighing up when the right time is to make their next move," MacRae said. "This offer gives brokers a timely reason to reconnect with customers and revisit plans that may have been put on hold and could be just enough to help them take another look at what's possible."

The timing of the discount carries context. The Reserve Bank held the cash rate at 4.35% in August but signalled ongoing concern about inflation. Bendigo Bank's chief economist David Robertson has retained a forecast of a further rise in November, describing the RBA's Monetary Policy Statement language as "sufficiently hawkish." With the big four banks not expected to move rates down this year — and any relief widely not anticipated before 2027 — a 0.25% reduction from a specialist lender is meaningful in the current environment.

Who benefits most from this offer

Bluestone has spent more than 26 years building its product range specifically around borrowers who fall outside standard lending policies. That means:

- **Self-employed borrowers** who rely on alternative income documentation and whose tax returns may not fully reflect actual income - **Borrowers recovering from a past credit event**, such as a default, judgment, or bankruptcy discharge, who face significantly narrowed choices from mainstream lenders - **Applicants with non-standard financial arrangements**, including complex trust structures, non-resident income, or irregular income patterns

MacRae noted the lender's consistent focus: "For more than 26 years, we've worked alongside brokers to support customers whose circumstances don't always fit the traditional lending mould. Whether they're self-employed, rebuilding after a credit event, or navigating a more complex financial situation, we're focused on helping brokers find a way forward for more customers."

For these borrowers, pricing at non-bank lenders can differ from the major banks — but the gap has narrowed meaningfully over recent years, and the flexibility in lending policy often outweighs a minor rate difference. A 0.25% reduction makes the comparison even closer.

In dollar terms: on a $600,000 loan, 0.25% per annum in reduced interest represents approximately $1,500 a year in savings, or around $125 a month. On a $750,000 loan, that is closer to $1,875 a year — around $156 a month — before compounding effects over the loan term. These figures are illustrative; your actual saving depends on your rate, loan balance, and repayment structure.

What to check before you apply

The discount applies to new loan applications only — not existing Bluestone customers refinancing within the book. The 80% LVR cap is a firm boundary: if your deposit is less than 20% of the property's value, you will not qualify for the rate discount. Standard eligibility criteria, fees, charges, and terms and conditions apply.

Spring tends to see a lift in buyer and seller activity as the auction calendar fills. For borrowers who have been waiting for the right conditions to make a move, the combination of reduced competition in the broader market — total new housing loan commitments fell $5.4 billion in the June quarter, the second consecutive quarterly drop — and a promotional rate cut from a specialist lender represents a more favourable entry point than earlier in the year.

If you are not sure whether a specialist lender suits your situation, comparing options is the sensible starting point. Our investor home loans hub covers specialist lenders alongside mainstream options for property investors, and the cheapest home loans page provides a regularly updated snapshot of where rates sit across the market. For those weighing a smaller deposit against the cost of lender's mortgage insurance, the LMI calculator can help you run the numbers on different LVR scenarios before committing to a direction.

Non-bank lenders like Bluestone occupy an important part of the market — they serve borrowers the major banks routinely decline, and in an environment where new lending volumes have fallen sharply, their appetite to write good business is often stronger. The spring discount is one signal of that.