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The non-bank lender has announced decreased serviceability buffers across all its products along with a slew of other policy changes.
Non-bank lender Bluestone Home Loans (Bluestone) has announced it has lowered its serviceability buffer for all its products to 2 per cent, down from 2.5 per cent as part of its range of over 20 policy changes aimed at easing market challenges faced by both brokers and customers and to improve lending serviceability and flexibility.
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Along with the decreased serviceability buffer, the policy overhaul also includes increases to loan-to-value ratio (LVR) and loan amounts across the country.
Loan amounts in Sydney and Melbourne now carry a maximum loan amount of $3 million, while in other capitals and select regional cities (excluding Darwin), loan amounts have increased to $2.5 million and LVR up to 90 per cent. For non-metro locations, loan amounts have increased to $1.5 million.
Additionally, LVR on near prime loans has increased to 90 per cent, up from 85 per cent, along with no cash out limits on loans; up to 90 per cent LVR for prime and near prime; and 80 per cent LVR for Specialist and Specialist+.
Furthermore, some of the changes aimed at helping customers include no debt consolidation limit on prime loans; six months’ minimum ABN for Specialist and Specialist+ Alt Doc loans; an unlimited line of credit up to 50 per cent of total loan amount; and refinancing of private lenders with monthly repayments on prime loans or where interest has been capitalised on near prime loans.
Bluestone has confirmed that all the new policies come into effect as of 28 September 2023.
Bluestone chief sales officer Tony MacRae stated the non-bank lender prioritises feedback from broker partners in order to better serve their customers.
“We’re continuing our commitment to be the ‘go-to’ lender for non-standard customers, so we’ve simplified requirements and reduced paperwork to offer greater flexibility,” Mr MacRae said.
“For instance, we’ve lowered our SMSF loan liquidity requirement to just 5 per cent to make it easier for customers looking to grow their wealth for retirement.
“We’ve also increased our maximum loan amounts and LVRs in key areas across Australia, and as we don’t charge Lender’s Mortgage Insurance, customers are able to get into their own home sooner as well as save thousands in costs.”
Mr MacRae added that the non-bank lender has more changes in the pipeline due to go live towards the end of October this year.
[RELATED: Bluestone lifts broker commissions for complex loans]
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