Non-bank lender Bluestone Mortgages has announced an out-of-cycle rate reduction of up to 50 basis points for segments of their product range. These discounts will apply to home loans targeted at self-employed and PAYG borrowers.
“We expect the rate cuts, and the corresponding opportunity to secure a lower rate loan, will be well received by borrowers at this ‘expense heavy’ Christmas period,” said Campbell Smyth, CEO of Bluestone Mortgages.
Royden D’Vaz, head of sales and marketing, explained how these cuts would be made since the lender has no set rates advertised online. Rates are calculated based on the borrower’s credit rating and the risk to Bluestone itself, he said.
“The point of triangulation is determined between the LVR and credit impairment. So if you look on a sliding scale, a client with a very low LVR and clear credit sits at one end and then it slides up the scale to a higher LVR and a higher impairment.”
Within this range, there are 30 segments for any one product, each of which has its own interest rate, D’Vaz told
Australian Broker.
D’Vaz said the non-bank remained focused on providing brokers with products and features which would benefit more customers.
“This rate cut will help more borrowers and make it easier for brokers to help their customers,” he said. “We understand the challenges that brokers face on a daily basis, and we continue to look for ways to help our broker partners help their customers.”
Bluestone’s rate cuts come at a time when the lender has expanded its team of BDMs and credit assessors to help brokers find a loan solution for self-employed and small business clients.
“We encourage brokers to find out how they can help self-employed clients more often, and in the process improve your value proposition, broaden your customer base and benefit from a new revenue stream,” D’Vaz said.
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