New clients await in specialist lending space

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While it won’t make you a cappuccino, ScotPac’s Partner Portal makes helping commercial clients so fast and easy brokers will wonder how they did without it

BORROWERS WITH strong earning potential often sit just outside the standard mould, overlooked not because they’re unworthy but because they don’t tick the usual boxes. Mortgage brokers seeking new client opportunities are finding untapped potential by stepping beyond traditional lending boundaries into specialist and near prime markets. Across Australia, thousands of creditworthy borrowers fall outside mainstream criteria – self-employed professionals, those with minor credit blips, or clients navigating life transitions – representing major opportunities for brokers willing to explore alternative solutions.

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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AARON TAYLOR, Bluestone HOME loans

Self-employed individuals now account for a larger proportion of the workforce, yet many of them struggle to secure finance through conventional channels despite their earning capacity. “More borrowers than ever don’t fit the traditional lending mould,” says Aaron Taylor, head of non-standard lending at Bluestone Home Loans. “Whether it’s the rise in self-employment, the increasing cost of living, or changes in credit profiles post-pandemic, specialised lending plays an important role in ensuring more Australians can secure home loans.” This overlooked group is fuelling renewed interest in near prime and specialist lending. As self-employment rises and borrower profiles diversify, brokers who step outside conventional frameworks are finding real opportunities. By focusing on a client’s future prospects as well as their present circumstances, brokers can unlock deals that mainstream lenders often miss – broadening access to finance and growing their own businesses in the process.

RICHARD CHESWORTH, BLUESTONE home loans

Borrowers with non-standard circumstances create opportunities for brokers who understand specialist products. The self-employed are a group that continues to grow as working arrangements become more flexible. Independent contractor numbers are rising at a steady clip, with government statistics showing that their ranks grew by 10% from August 2023 to August 2024. More than half work in just three sectors: construction; professional, scientific and technical services; and healthcare and social assistance.

These clients include self-employed individuals with limited financial history, PAYG workers with minor credit impairments, and those recently recovered from major life events such as divorce. “Clients with strong earning capacity can still be overlooked by traditional lenders,” Taylor explains. “That’s where near prime and specialist lending can make a real difference.” The key lies in recognising these opportunities early. Brokers should look for clients who have been declined elsewhere, experienced financial disruption, or earn income through unconventional means. These situations often represent viable lending scenarios when approached with the right products and expertise.

Many brokers remain unaware of near prime and specialist lending options, creating education opportunities for brokers. “Borrowers often don’t understand the concept of prime, near prime or specialist lending,” Taylor observes. “So it’s the broker’s job to understand the products and solutions available.” This positioning requires brokers to reframe their approach to client conversations. Instead of focusing on what clients cannot access, successful brokers emphasise what becomes possible through alternative lending channels. This shift in perspective helps clients understand their options without feeling stigmatised. There is also still a customer segment who may not fully understand how brokers can help. For all the opportunities in specialist lending, many Australians don’t realise the role brokers can play – particularly borrowers who’ve only dealt directly with lenders. According to the FBAA’s Consumer Access to Mortgages 2025 report, 40% of consumers have limited familiarity with what mortgage brokers do. Only one in three consumers say they’re ‘very’ or ‘extremely’ familiar with broker services. Among non-mortgage holders, awareness is especially low: nearly one-third say they’re not familiar at all. This lack of understanding persists despite brokers being the preferred channel for most borrowers – especially those seeking personalised support, product comparison, or help with navigating complex scenarios.

“Clients with strong earning capacity can still be overlooked by traditional lenders. That’s where near prime and specialist lending can make a real difference”

“We invest a lot of effort in educating brokers in [the SMSF] space”

A growing segment of creditworthy borrowers is overlooked by traditional lenders. Savvy brokers are seizing the opportunity in specialist and near prime lending, uncovering clients that others fail to spot

While it won’t make you a cappuccino, ScotPac’s Partner Portal makes helping commercial clients so fast and easy brokers will wonder how they did without it

Specialist lending excels in addressing unique borrower circumstances that don’t fit standard assessment criteria. Bluestone regularly funds loans for self-employed borrowers, particularly those requiring alternative documentation or managing fluctuating income streams. “Our flexible approach to lending meant that by focusing on their current situation, strengths and future earning potential, we were able to find a specialist lending solution,” Taylor notes. Debt consolidation represents another significant opportunity, especially for clients with past credit impairments or ATO debt who have since stabilised their finances. Property investors using non-traditional income streams or seeking to purchase through self-managed superannuation funds also benefit from specialist approaches. The distinction between specialist lending and traditional products lies in assessment methodology rather than borrower quality. Rather than applying rigid criteria, specialist lenders evaluate the complete financial picture, considering future earning potential alongside current circumstances.

SMSF lending represents a particularly specialised area requiring both technical knowledge and regulatory understanding. Bluestone invests significantly in broker education within this space, recognising the complexity involved. “We know this is such a specialist area that requires both technical knowledge and confidence to have the right conversations with clients,” says Richard Chesworth, head of specialised distribution at Bluestone. “So we invest a lot of effort in educating brokers in this space.” This education strategy extends beyond basic lending criteria to encompass SMSF structures, operational requirements and the important distinction between credit advice and financial advice. Bluestone’s comprehensive approach helps brokers engage clients confidently while maintaining compliance standards. Regular webinars and workshops cover SMSF lending fundamentals, supplemented by assessment tools that help identify suitable opportunities early in client relationships. Combined with ongoing support from lending teams and business development managers, this creates a complete framework for broker success in SMSF lending.

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Success with complex lending scenarios requires ongoing support and skills development. Bluestone addresses this through regular scenario workshops focusing specifically on unique applications, helping brokers develop expertise in structuring non-mainstream deals. “Bluestone is all about helping brokers build confidence with complex scenarios, and that starts with the right support and education,” Taylor says.

These workshops emphasise practical, interactive learning that brokers can immediately apply. Beyond formal training, direct access to business development managers and credit experts provides real-time support for challenging scenarios. This comprehensive support structure enables brokers to approach complex cases with confidence, knowing expert assistance remains available throughout the process. The result is increased conversion rates and expanded client bases for participating brokers.

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Positioning products effectively

Source: ABS, Working Arrangements, August 2024

Independent contractors by industry

Aug 23 (‘000)

Aug 24 (‘000)

Growing number of independentcontractors

Source: FBAA Consumer Access to Mortgages 2025 report

Extremely familiar

Very familiar

How familiar are Australians with the services offered by mortgage brokers?

Moderately familiar

Somewhat familiar

Not familiar at all

SMSF lending expertise

Several trends indicate continued growth opportunities in specialist lending. Self-employment rates continue climbing as more Australians seek flexibility and independence, yet these workers often struggle with rigid mainstream lending requirements. Post-pandemic credit profile changes have affected many borrowers, creating ongoing demand for flexible assessment approaches. Cost of living pressures have similarly impacted traditional lending scenarios, opening fertile ground for alternative solutions. “Brokers need access to lenders who understand these challenges and offer solutions that work in the real world,” Taylor says. The opportunity extends beyond individual transactions to long-term business growth. Brokers who develop expertise in specialist lending can cultivate a distinct advantage in competitive markets while supporting previously underserved client segments. Success requires recognising that specialist lending isn’t about lowering the bar – it’s about using different tools to nurture strong outcomes. With the right support and education, brokers can grow their service offerings with confidence, all while maintaining professional standards. And with a careful eye and a willingness to look beyond the surface, brokers can uncover clients full of potential – people who simply need the right conditions to thrive.

Market opportunities ahead

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