Bluestone lending policy separates recent mortgage conduct from older credit events and provides full-doc and alt-doc income routes across its residential tiers. For your commission forecast, match the selected loan to your remuneration agreement, then reconcile the amount advanced with the payment received.
A client whose repayments have improved still needs a file that explains the earlier credit event. Use the lender-policy directory when comparing that file with another lender’s requirements.
Upfront and Trail Conditions
Calculate Bluestone upfront from the commissionable advance and the rate in the agreement covering that product and settlement. Keep the lender-to-aggregator payment separate from your brokerage’s share.
Your reconciliation needs the product name, settlement amount and commission rate, with the agreement’s balance definition beside them. Record whether GST is included before comparing the calculation with a recipient-created tax invoice (RCTI).
For an illustrative calculation, assume the agreement makes $500,000 commissionable at a hypothetical 0.60% excluding GST. Gross upfront is $3,000 excluding GST. This example demonstrates the calculation and does not state Bluestone’s rate.
For trail, use the agreement’s eligible balance and annual trail rate, then apply its payment-period method. Keep any offset or redraw adjustment beside the balance it changes. A monthly estimate based on one-twelfth of annual trail is useful only when that matches the agreement’s method.
Reconcile ongoing receipts loan by loan. Record a paid-down balance separately from a discharge, and investigate a missing payment against the statement’s account reference. Retain the agreement’s arrears and payment-cessation terms with the calculation so a credit-policy tolerance does not become an assumed entitlement to trail.
Discharge and Loan Modification
Assess a Bluestone discharge against the clawback terms attached to the original commission payment. Match the repayment event and elapsed period to those terms before calculating an amount to reserve.
For a full payout, retain the payout figure and the original upfront payment. For a large partial repayment, record the balance before and after the transaction. Apply a partial-repayment clawback only where the agreement defines that trigger. A fall in trail after a balance reduction is a separate calculation from repayment of upfront.
Use this transaction comparison before forecasting another payment.
| Transaction | Amount to reconcile | Commission question |
|---|---|---|
| External refinance into Bluestone | Bluestone funds used to clear the outgoing lender, plus any additional advance | Which part of the new settlement is commissionable? |
| Internal replacement | Existing Bluestone debt carried into the replacement and any extra funds | Does the agreement pay for a replacement, additional lending or both? |
| Top-up | Additional funds advanced above the existing debt | What amount and minimum increase qualify under the variation terms? |
| Split | Debt allocated between the resulting accounts | Has new money been advanced, or has the existing balance only been divided? |
For example, a hypothetical $450,000 Bluestone balance split into $300,000 and $150,000 still totals $450,000. The account change alone provides no evidence of an additional advance. Keep the variation approval with both account references to avoid counting the same debt twice.
Track My Trail’s Clawback Risk shows loans still inside their clawback period, with days remaining and the upfront at stake under the applicable rules. Use that exposure when planning a reserve for an early payout.
Recent Conduct and Credit History
Bluestone assesses recent mortgage arrears separately from defaults and judgments. Its Bluestone guide for brokers distinguishes these mortgage-conduct tests over the last six months.
| Tier | Mortgage-conduct rule |
|---|---|
| Prime | No arrears greater than 14 days |
| Near Prime | No deterioration of arrears of more than one month |
| Specialist | No deterioration of arrears of more than two months |
| Specialist+ | No deterioration of arrears of more than three months |
Keep the guide’s distinction between arrears and deterioration when describing the account. A balance that remains overdue needs a different explanation from one whose arrears have increased.
The Online Credit Policy gives Prime a separate test for personal loans, credit cards and auto loans: no arrears greater than 14 days in the most recent reported month. Other tiers allow conduct exceptions with a reasonable explanation.
Build a mortgage timeline from statements covering the assessment period. Mark scheduled repayments and actual credits, then reconcile the arrears position with the credit report. Keep other liabilities in their own schedule so their reporting period stays visible.
For older defaults or judgments, attach the credit-report entry and evidence of payment or discharge where applicable. Explain what caused the event and what changed. Improved mortgage conduct and a resolved historical default answer different parts of the assessment.
Income Evidence and Trading History
Bluestone provides full-doc and alt-doc routes for self-employed applicants, with business history tied to the tier in its Bluestone guide.
| Tier | ABN registration | GST registration |
|---|---|---|
| Prime | More than 24 months | More than 12 months |
| Near Prime | More than 12 months | More than one day |
| Specialist and Specialist+ | More than six months | More than one day |
Full-doc uses one year’s tax return and notice of assessment. Alt-doc accepts six months of business activity statements with the BAS calculator, six months of business bank statements or an accountant’s letter.
Choose the route that explains the applicant’s actual earnings. When a business changes legal structure, include its earlier trading records and explain the continuity. Separate business turnover from the income declared for servicing.
For mixed earnings, show each source and the amount used. The Online Credit Policy allows 100% of commission income with two years’ evidence, otherwise 50%.
Reconcile payslips with bank credits when an applicant combines employment and business income. Identify any salary already included in the business figures so the same earnings are counted once.
Applicants, Property and Purpose
Bluestone’s borrower eligibility and security rules can rule out a file that meets an income route. The Online Credit Policy accepts Australian or New Zealand citizens or permanent residents living in Australia. Other visas or pending permanent-residency applications need at least one citizen or permanent-resident borrower or guarantor. Overseas applicants have a separate expat route.
Test the property and purpose before ordering the remaining income documents. Bluestone lists hobby farms and holiday or resort short-term letting among unacceptable residential securities. It also excludes refinancing property in possession or where an eviction notice has been issued.
Match the valuation’s property description to the proposed security. Calculate the loan-to-value ratio (LVR) using the proposed debt, then account for capitalised fees when testing the product limit. Keep a cash-out purpose separate from the amount needed to repay existing debt.
A broker’s explanation of stable income does not resolve an unacceptable security. Identify that issue in the initial credit query so the applicant’s documents support a viable proposal.
Document Pack and Credit Query
Give Bluestone a file that reconciles the repayment timeline with income evidence and the proposed use of funds. Organise it so credit can follow each amount back to a document.
- Set out the requested product and loan amount. Split the funds between debt payouts and additional purposes, with supporting figures.
- Attach the mortgage-conduct timeline. Explain any difference between statement arrears and the credit report, then list other liabilities separately.
- Show the chosen income route and business history. Reconcile declared earnings with the attached tax records, BAS or bank statements.
- Attach residency evidence and security details. Identify any property characteristic that affects eligibility.
- State any requested departure precisely. Name the policy condition, the applicant’s position and the evidence supporting your request.
In an illustrative query, a broker could write: “The refinance mortgage has improving arrears, while the credit report shows an older paid default. The attached statements reconcile the repayment trend. Please assess the proposed tier against that conduct and the separate default record.”
Add the actual arrears figures and default details to that query. Keep the written credit response with the documents it relies on. The Bluestone broker contact and access guide helps you reach the appropriate team with a complete scenario.
