A Broker’s Take On Bluestone’s Near Prime Product (Interview)
Find out what one of our valued brokers had to say about their experience with Bluestone since we made the move into near prime.
Now that our near prime product has been successfully launched and application volume in this space is steadily growing, we felt it would be prudent to examine the direct impact of this new offering on our brokers’ businesses. We sat down with one of our valued brokers, Mark Gordon Mott from Complete Capital in Victoria, to chat about his experience with Bluestone since we made the move into near prime.
- How has Bluestone’s near prime product helped you diversify your business?
Recently, we have noticed more and more customers looking for alternate options outside of the major banks, even those with a clear credit history. With Bluestone’s near prime product, we’re now able to help these customers with a rate that is competitive, sometimes only half a percent off the rate the majors are offering.
We’re also in a better position to help more self-employed customers, since Bluestone now has an extensive range of products and solutions for many types of client scenarios. Self-employed clients now have an opportunity to potentially gain access to near prime loans, rather than Bluestone being a one stop shop for non-conforming loans only.
- How many near prime deals have you settled with Bluestone since we moved into near prime?
We’ve already settled six deals in this space since May, and I wouldn’t be surprised if we are settling double the amount next year. We’ve also seen about a third increase in the average deal value this year compared to last financial year, which is exciting.
3. Could you give us some examples of the deals you’ve been able to settle?
Recently, I was approached by a young tradesman who was looking to purchase a property valued at $750k. He had an established ABN and a thriving business. He already had a loan under his belt, with a major bank who he had been with since he was a teenager. He hadn’t had any issues with repayments, plus he was sitting on a sizeable nest egg in a savings account with the same bank. Understandably, he approached his current bank for the new loan but to his surprise, he was declined outright.
The decline stemmed from a couple of old savings accounts which the customer had opened years ago and didn’t use anymore. The accounts charged a fee of $5 a month and occasionally there wasn’t enough money in them to cover the small fees. He was always sure to pay them immediately afterwards, but didn’t really consider closing the accounts, as he was too busy running his business to think much of them. When the rejection hit, the bank’s BDM tried to appeal, but the credit team wouldn’t budge. So, the customer came to me and we took his application straight to Bluestone, where his loan settled with ease. What’s more, he got a rate of 4.54%, only 0.1% higher than the rate his bank was going to charge.
Then there was the case of two customers who co-owned a supermarket, with a turnover of about a million a year. They also owned two well-established restaurants, were up to date with their tax returns and had their bank statements in order. Access to their own groceries meant that they had a lower cost of living than expected, but the bank that they approached for a loan refused to recognise this and declined their application. We then turned to the people Bluestone, who were able to take the unique situation of these borrowers into consideration to ultimately find a near prime solution.
4. Could you tell us about one of the biggest benefits of working with Bluestone?
Yes, the biggest benefit is the smooth assessment process. We’ve noticed that while some of the banks are making it difficult to get certain loans through, Bluestone looks for reasons to say yes, and their teams work together with the broker to assess and approve the loan where it meets policy. It’s an enjoyable process for both the broker and the client. We have had clients say they can’t believe how seamless the process is and they would recommend us and Bluestone to others.
- Would you recommend Bluestone to other brokers?Most definitely. To be perfectly candid, it’s just plain stupid for any broker to miss out on what Bluestone is offering. For me, the greatest thing about Bluestone is the personalisation of their service. I enjoy working with people, and at Bluestone there’s a whole stack of people who I know and have dealt with to get deals done. From the awesome settlements team to the Head of Lending, who Shamith (my Bluestone BDM) and I once called from a cafe to workshop a particularly tricky deal.
I feel like Bluestone is more of a business partner, rather than a someone who we carry business with. From the bottom of our hearts, we appreciate everything they do. They’re one of the best propositions on the market.