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Alt-doc loans are crucial for the millions of workers who don’t have traditional pay structures.
Freelancers, gig workers, contractors and business owners make up around 5.1 million people in the Australian workforce, according to a Bluestone Home Loans dataset.
A recent episode of Broker Daily Spotlight with Wave Money highlighted how 17 per cent of the workforce is self-employed. This demographic is only growing.
The pandemic forced people to work differently. It also pushed people to make the leap into establishing their own businesses.
Speaking to Broker Daily, Bluestone chief commercial officer Tony MacRae said: “The economy and work habits are evolving, especially post-COVID. More Australians are choosing self-employment or earning income from multiple sources, which doesn’t always align with traditional income verification like payslips or audited accounts – particularly in the early years of a business.”
With this increase in self-employed, so too has the need for alt-doc loans boosted. So much so that Bluestone has recorded an astounding 260 per cent increase in alt-doc loans over 2024. Further, there has reportedly been a 39 times increase since 2019.
“Traditional lending criteria can be a major roadblock for self-employed borrowers. At Bluestone, we take a common-sense approach to assessing real financial situations, making home ownership more accessible for those who drive Australia’s economy,” said Aaron Taylor, head of non-standard lending at Bluestone.
The non-bank lender is continuing to prioritise alt-doc loans after seeing increased attention and success in the space.
According to a broker survey conducted by Bluestone:
- 75 per cent said submitting an Alt Doc loan with Bluestone is easier than with traditional lenders.
- 60 per cent said Bluestone handles complex borrower scenarios significantly better than competitors.
- 80 per cent said Bluestone has helped them service more self-employed and alternative income clients.
- 98 per cent say Bluestone has helped them grow their business.
“We make home loans simpler for business owners. Our assessment team understands the complexities of self-employed income and offers flexible alt-doc and low-doc options to streamline the process,” MacRae said.
“The broker industry was founded on providing customers with choice, a better deal and making the home loan process simpler.”
Non-bank lenders play an important role in servicing consumers with non-traditional pay structures.
Related: How Wave Money is thriving with a broker-centric strategy
